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Stocks close mixed as tech shares fall for the third day in a row

Tue, 09/10/2019 - 4:37pm

Stocks were mixed on Tuesday as investors continued to dump tech shares for the third day in a row.

The SPDR Technology Select Sector ETF — which tracks a basket of technology companies including Microsoft and Apple — fell 0.5%. Some of tech's loses were offset by modest gains in energy and materials stocks. 

Shares of Netflix, Disney, and Roku sank on Tuesday after Apple announced its streaming service would be priced at $4.99 per month. The figure is lower than Netflix's monthly offer, and what Disney plans to charge for its upcoming streaming service. 

Oil prices fell sharply after President Trump announced National Security Adviser John Bolton would be leaving his position in the White House, allaying fears the US might use military action as a diplomatic as tensions continue to rise in Asia and the Middle East. 

Investors have also been awaiting a meaningful sign on both trade negotiations between the US and China and the potential path of interest rates among central banks around the world.

Here's a look at the major indexes as of the 4 p.m. close on Monday:

Shares of Wendy's tanked 13% on Tuesday after the company slashed its profit outlook due to new investments to expand its breakfast offerings across the US. The fast-food restaurant said it now expects adjusted earnings per share to drop by 3.5% to 6.5%, compared to its previous expectations of growth between 3.5% and 7.5%. 

Ford's stock dropped as much as 5.2% after Moody's downgraded the carmaker's credit rating to junk status. The credit rating agency said Ford's performance has declined due to a massive restructuring of its business that expected to cost more than $11 billion. 

Within the S&P 500, these were the largest gainers:

And the largest decliners:

Real estate also took a hit on Tuesday, falling about 1.4%. Consumer staples fell more than 0.6%, while energy and industrials posted gains exceeding 1%.

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PITCH-DECK LIBRARY: The pitch decks that helped hot startups raise millions

Tue, 09/10/2019 - 4:36pm

  • Billions of dollars are invested in startups every year.
  • Whether a startup seeks to raise money from angel investors, venture-capital firms, or other backers, the presentation — or "pitch" — about the business is critical.
  • The most effective pitch decks deftly weave data, imagination, and storytelling in a captivating slide presentation.
  • Business Insider regularly interviews startups about fundraising strategies and collects the pitch decks that helped them raise funding. You can read them all by subscribing to BI Prime.

Following is a list of some recent startup pitch decks published by Business Insider, organized by the funding round that each deck was used for:

Seed Series A Series B Series C Series D Series E

SEE ALSO: The first-time founder's ultimate guide to pitching a VC

Join the conversation about this story »

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Land Rover just unveiled its long-awaited new Defender SUV. Take a closer look at this redesigned legend

Tue, 09/10/2019 - 4:10pm

  • At the 2019 Frankfurt Motor Show, Land Rover unveiled its all-new Defender SUV.
  • The Land Rover Defender has a rich legacy, dating back over 70 years. But it was discontinued in 2016 — and hadn't been legal for the US since the late 1990s. The new version is a revival that after many absent years will bring the Defender back to the US market.
  • The long-wheelbase Defender 110 will arrive in spring 2020, priced at just under $50,000 with a four-cylinder engine. The most expensive Defender will be $81,000. A short wheelbase SUV arrives in late 2020.
  • The new Defender was tested in a wide range of challenging environments to live up to its off-road legacy, but the vehicle is more stylish and high-tech than Defenders of the past.
  • Visit Business Insider's homepage for more stories.

Few SUVs have as much pure off-road credibility as the legendary Land Rover Defender. The Ultimate Expedition Machine dates back seven decades and has done it all, from crossing mountains to fording rivers and everything imaginable in between.

The previous generation Defender traces back to the early 1980s (updated in the 1990s), but it fell short of US regulations in the late '90s and hasn't been available in the American market since. The vehicle was also discontinued in 2016, with the expectation that an updated, redesigned SUV would follow.

After a wait, it's arrived. Land Rover pulled the cover off at the Frankfurt Motor Show. 

Here's a closer look at the new Defender, in all its glory:

See also: Apply here to attend IGNITION: Transportation, an event focused on the future of transportation, in San Francisco on October 22.

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The all-new Land Rover Defender debuted at the 2019 Frankfurt Motor Show in Germany.

The Defender has set a formidable ruggedness standard for over seven decades. The outgoing model dated to the early 1980s, but had been put out to pasture in 2016.

A typical Defender adventure included some partially submerged time.

While the outgoing Defender, with its boxy styling, proclaimed a utilitarian mission, the redesigned Defender arguably projects a slightly less no-nonsense demeanor.

"The new Defender is respectful of its past but is not harnessed by it," Gerry McGovern, Land Rover's head designer, said in a statement.

"This is a new Defender for a New Age. Its unique personality is accentuated by its distinctive silhouette and optimum proportions, which make it both highly desirable and seriously capable – a visually compelling 4x4 that wears its design and engineering integrity with uncompromised commitment."



The Defender will ultimately be available in both two- and four-door configurations: the 110 is the long wheelbase version, while the 90 is shorter.

According to Land Rover, six trim designations will be offered: Defender, Defender S, Defender SE, Defender HSE, Defender X, and Defender First Edition.



The new Defender might lose some cred with the purists because it won't be a made-in-England machine. Manufacturing will be handled in the Slovak Republic.

Fears should be put to rest by JLR's extensive torture-testing of the new Defender.

The SUV has negotiated everything from rocky, roadless terrain ...

... To Germany's famed Nurburgring race track.

A Defender isn't a Defender if it isn't up to the challenge of adventures in rough country.

The SUBV needs to be able to rock-crawl with its four-wheel-drive system ...

... Manage extreme inclines ...

... ford rivers ...

... and get down and dirty and wet and muddy. The Defender can deal with water almost three feet deep, and it can tow more than 8,000 pounds. Its Terrain Response 2 tech can be customized by the driver, depending on conditions.

"Raised air intakes are a vital addition in dusty locations, protecting the engine by delivering cleaner air from their elevated position, and the Defender is available with a close-fitting semi-integrated design that fits neatly onto the side-mounted engine air intake in the front fender, to preserve performance in dusty environments," Jaguar Land Rover said in a statement.

Bring on the deserts!



That said, the Defender has also been designed for less demanding duty.

In a statement, Jaguar Land Rover outlined several add-on "packs" that owners can use to accessorize their Defender for different obligations.

The Explorer Pack provides an expedition roof rack, exterior side-mounted gear carrier, wheel arch protection and a spare wheel cover. "A matte black hood decal, featuring '90' or '110' cut-out detailing, completes the Explorer Pack's head-turning appearance," Jaguar Land Rover said.

The Adventure Pack offers a portable rinse system with a 1.7 gallon-pressurized water reservoir, trunk-mounted integrated air compressor, and an exterior side-mounted gear carrier.

The Country Pack adds wheel arch protection, a rear scuff plate, the aforementioned rinse system and a cargo partition.

The Urban Pack has the rear scuff plate and the spare wheel cover, as well as a front undershield.



Two powertrains will be offered to US buyers. The P300 turbocharged four-cylinder engine makes 296 horsepower and promises a 0-60 mph time of just under eight seconds, while the P400 is a mild hybrid six-cylinder making 395 hp, with a sub-six-second 0-60mph time. Both engines are yoked to an eight-speed automatic transmission.

While on-road, drivers and passengers will benefit from "emergency braking, lane-keep assist, traffic-sign recognition, cruise control and speed-limiter functions, driver condition monitor, and front and rear parking aids," the company said. Safety first!

Unlike some of the hardtail SUVs of old, the Defender's D7x engineering, as explained by Jaguar Land Rover, makes use of a lightweight, stiff aluminum monocoque assembly and four-wheel independent suspension, versus a body-on-frame steel construction with rear leaf-springs.

The interiors combine versatility and durability with premium appointments for the upscale trims, including leather upholstery and wood details. A non-leather premium wool upholstery treatment is also an option.

The Defender will be a connected expedition vehicle. An available Online Pack provides "unlimited data for music streaming, weather updates and calendar information via the infotainment screen," the automaker said. Wi-Fi will also be an option, via subscription.

A top-range Meridian audio system will have a 14-speaker, 700-watt setup available.



The Defender 110 starts at $49,900 and goes on sales next spring. The Defender 90 follows later in 2019. The most expensive configuration of the 110 is the X edition with the inline six engine, priced at about $81,000.

The world has been waiting three years for its new Defender, and Land Rover has delivered with style and purpose.

Jamie Dimon reveals JPMorgan is already preparing for the possibility of zero-percent interest rates in the US (JPM)

Tue, 09/10/2019 - 4:03pm

  • JPMorgan Chase is preparing for the risk of zero-percent interest rates in the US, CEO Jamie Dimon said at a New York conference Tuesday.
  • The executive noted certain businesses are more affected by neutral or negative rates than others, saying banks can cut costs and boost fees to address tightening margins.
  • Dimon admitted the recent drop in US interest rates surprised him. He predicted in 2018 that rates would rise. 
  • Watch JPMorgan Chase trade live here.

JPMorgan Chase is preparing for the risk of zero-percent interest rates in the US, according to Jamie Dimon, despite his doubt of rates ever falling so low.

The bank's CEO said at a New York conference Tuesday that the recent spell of falling rates surprised him.

"I don't think we'll have zero rates in the US, but we're thinking about how to be prepared for it, just in the normal course of risk management," Dimon said. "Obviously, you've got to worry about the long term effect of those interest rates."

Dimon added banks can cut costs, boost efficiencies, and charge customers more in fees to account for slowing margin growth. Falling rates led several banks to bring in lower-than-expected interest income over recent months, according to several banks' quarterly filings.

"There are businesses it doesn't affect at all. And there are businesses where it just sucks into your margin and there's very little you can do about it," the CEO said.

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Dimon told investors in May 2018 they should prepare for possible 4% yields in 10-year Treasury bonds, as well as higher market volatility. Though the former prediction never game to be, markets saw wild swings through the summer as the US-China trade war raged on and key recession indicators flashed their first warnings in decades.

The JPMorgan executive isn't the only one keeping negative rates in the realm of possibilities. Former Fed chairman Alan Greenspan said in August he wouldn't be surprised to see Treasury yields reach negative rates, adding that such a move wouldn't be very significant anyway.

"There is no barrier for US Treasury yields going below zero," Greenspan said. "Zero has no meaning, besides being a certain level."

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Here's the pitch deck that cannabis-beverage startup K-Zen used to raise $5 million from seasoned Silicon Valley VC firm DCM Ventures

Tue, 09/10/2019 - 4:03pm

For cannabis startups, particularly ones that deal with THC directly, raising money from mainstream investors can be a challenge.

While cannabis legalization is increasingly sweeping the US, THC is still considered an illegal drug by the federal government. That means that most mainstream venture funds are reluctant to invest in companies that directly sell or cultivate THC-containing products, despite the attractive growth prospects.

For K-Zen, a San Francisco-based cannabis-beverage startup, that wasn't an issue. K-Zen closed a $5 million seed round in May, led by the early-stage fund DCM Ventures.

DCM, for its part, has been one of the few prestigious venture funds willing to invest in cannabis. The firm, which manages more than $4 billion, also invested in the cannabis-delivery startup Eaze's $65 million Series C round in November.

K-Zen co-CEO Judy Yee told Business Insider in an interview that she and her co-founder, Soon Yu, did "lots of homework" to figure out which investors to pitch.

Yee said her team looked primarily at investors like DCM that have previously worked on deals in the cannabis space or had signaled they were open to the right opportunity.

Read more: The CEO of cannabis-tech startup Headset told us why having a concise mission statement is crucial to successfully pitching investors

"I think by targeting those types of investors, we haven't had to run into a lot of folks saying, 'no, that isn't part of my investment thesis,'" Yee said. "We did that homework up front."

Most mainstream venture firms are locked out of investing in cannabis because their investors, known as limited partners, often don't want to invest in the substance.

K-Zen was also helped by the network of Yu, Yee said. Yu attended Stanford's business school with DCM cofounder and general partner David Chao in the early 1990s, and Chao, through DCM, had previously invested in a few startups Yu founded. 

When Yu — who previously held senior positions at Earthbound Farms, Safeway, and Crystal Geyser before taking time off to raise a family — and Yee were discussing how to build a cannabis brand in K-Zen's very early days, Yu set up a meeting with DCM's Chao to figure out a strategy.

"So that's how everything got started," Yee said. She added that DCM was aligned with her view that beverages were going to be the "form factor" or consumption method that pushed cannabis into the mainstream. 

K-Zen recently released a line of THC and CBD-infused "shots" that can be mixed in with beverages. The startup's near-term goals are to "round out" its portfolio with new products, look at new state markets, and ramp up its direct-to-consumer sales, Yee said.

Right now, K-Zen sells products only in California, where cannabis is legal.

"We're looking at this not just as launching one big brand, but really creating a category," Yee said. 

K-Zen is also gearing up to raise a new round of funding.

Yee said the company has started to gauge investor interest and estimated she's had conversations with around seven or eight investors outside DCM.

"We're taking our time," Yee said. "We're getting a sense of the market and where people are at."  

Check out the pitch deck that helped K-Zen raise $5 million here, exclusive to Business Insider: 





Wall Street analysts are bullish on consumer cannabis beverages. Some say the market will near $2 billion in a few short years.







Yee said K-Zen's leadership team brings together experienced people that have led businesses and know to how to fundraise.







"We took a real good look at the marketplace," Yee said. "We looked at what's working, what's not, where are the opportunities, how can we catapult from what's out there today."

"It's all about execution," Yee said. Consumers have questions about cannabis — and Yee wants K-Zen to help answer, "Does it feel like drinking a glass of wine? How long is it gonna last?"



Eventually, Yee said K-Zen wants to build a "house of brands" under one roof.





These 17 retailers have filed for bankruptcy or liquidation in 2019

Tue, 09/10/2019 - 3:41pm

  • We're more than halfway through 2019, and the number of national retailers that have filed for bankruptcy since the beginning of the year only continues to grow. 
  • Not all of these companies will cease to exist — some are just looking to restructure.
  • Check out which retailers have already filed for bankruptcy this year.
  • Visit Business Insider's homepage for more stories.

We're now more than halfway through 2019, and the number of major retailers filing for bankruptcy continues to grow. 

In August, both Marie Callender's and Barneys New York announced they were filing for Chapter 11 bankruptcy protection, coming on the heels of several other retailers that already filed earlier this year, including Gymboree and Diesel. Some of these bankruptcies will allow companies to restructure and reenter the fray. Others, like Payless and Charlotte Russe, will shut down entirely.

Read more: Yelp is using its data to evaluate the American economy — and it says these businesses are in a slump

Unfortunately, this means that thousands of stores will shutter and thousands of employees will lose their jobs. And, given that there are still more than three months left in the year, it's possible there will be even more bankruptcies to come in 2019.

Here's a list of the retail companies that have filed for bankruptcy so far:

SEE ALSO: 6 companies that have filed for bankruptcy but you can still shop or eat at

Beauty Brands

Beauty Brands filed for Chapter 11 bankruptcy on January 4.



Innovative Mattress Solutions

The Kentucky-based mattress company, which owns Mattress Warehouse, Mattress King, and Sleep Outfitters, filed for Chapter 11 bankruptcy on January 14.



Shopko

This Wisconsin-based retailer filed for Chapter 11 bankruptcy on January 16. On March 19, CBS reported that Shopko's 363 stores would close after the company failed to find a buyer.



Gymboree

Gymboree, a clothing company that also runs Janie & Jack and Crazy 8 stores, filed for bankruptcy on January 17. It is closing all of its more than 800 Gymboree and Crazy 8 stores.



FullBeauty Brands

FullBeauty Brands is a clothing retailer that filed for bankruptcy on February 4. The company exited bankruptcy within 24 hours.



Charlotte Russe

This women's clothing retailer filed for bankruptcy on February 4 and announced that it would closing all of its stores on March 6.



Things Remembered

This personalized keepsake retailer filed for Chapter 11 bankruptcy on February 6.



Payless ShoeSource

Payless filed for bankruptcy on February 18. The shoe store will close all its remaining locations, aside from franchise stores.



Diesel

Jeans company Diesel USA filed for bankruptcy on March 5.



Z Gallerie

The Los Angeles-based home furnishing retailer filed for Chapter 11 bankruptcy on March 11. It said it would seek to close 17 stores.



Roberto Cavalli

All US-based Roberto Cavalli stores have closed, and the retailer has filed for Chapter 7 bankruptcy, according to Retail Dive. The fashion company operates in North America as Art Fashion Corp. 



Kona Grill

Sushi-and-cocktails chain Kona Grill filed for bankruptcy on April 30, Restaurant Business reported. The restaurant shut down 15 of its locations.

The closures come amid Kona Grill's legal battle against its former CEO, who is counter-suing the restaurant for unpaid severance.

The chain is being bought by another former CEO, Marcus Jundt, Nation's Restaurant News reported.



Perkins & Marie Callender's

Perkins & Marie Callender's filed for bankruptcy on August 5, a day after closing 29 locations — 10 Perkins and 19 Marie Callender's restaurants — in an attempt to restructure. The move will ultimately impact an estimated 1,190 employees, USA Today reported. 



Barneys New York

Barneys New York filed for bankruptcy on August 6 and put itself up for sale as it attempts to refinance amid skyrocketing rents and dwindling foot traffic. The retailer has secured financing from Hilco Global and Gordon Brothers Group to stay afloat as it figures out its next move. 



A'gaci

Fashion retailer A'gaci released a statement announcing the impending closure of its 54 locations in the US as part of its Chapter 11 bankruptcy filing.

"A'gaci shoppers will be surprised at the selection of highly desirable product in all 54 stores," a spokesperson said in the statement.



Fred's

Market Watch reported that Memphis-based retail chain Fred's filed for Chapter 11 on September 9. The 72-year old company will shutter its remaining stores.



Sugarfina

The Wall Street Journal reported that boozy candy store chain Sugarfina filed for Chapter 11 on September 6. The company is reportedly looking to sell its businesses and shut down at least six of its stores.

Got a tip? Email acain@businessinsider.com.



WeWork's shrinking IPO will erase billions from CEO Adam Neumann's payday, but he'll still likely come out a multibillionaire

Tue, 09/10/2019 - 3:35pm

  • If WeWork's valuation gets compressed in its IPO, there's one person who stands to lose a lot of money: founder and CEO Adam Neumann.
  • We don't know how much he could lose because the company hasn't disclosed enough information about his ownership.
  • However, we do know some information about the number of shares he controls.
  • And we know some information about how much SoftBank paid for some shares when it invested at a $47 billion valuation.
  • Based on those tidbits, we calculate that Neumann could lose billions immediately and perhaps millions of dollars more if he fails to earn certain equity tranches that were contingent on soaring valuations.
  • Read all of Business Insider's WeWork coverage here.

Word on the street is that investors are so cool toward WeWork's initial public offering that the company may have to list at one-third of its $47 billion private-company valuation: as low as $15 billion to $18 billion, sources told Reuters.

And there's one person who stands to lose the most money if that happens: WeWork founder and CEO Adam Neumann, the company's single largest individual shareholder.

It's impossible to know just how much money Neumann could lose because WeWork hasn't revealed exactly how much of the company he owns. 

On top of this, WeWork's parent company has adopted a complicated structure known as an Up-C, a collection of LLCs. Much of Neumann's stake involves something called "profits interests," or shares in those various LLCs, which obscures his ownership stake even more.

However, there are some things we do know, and with that information and some educated estimating, we can deduce that Neumann could lose billions of dollars if the IPO falls so short.

So, just for the heck of it, let's try to estimate what he stands to lose if Wall Street stays cool on his company.

Over 104 million shares

WeWork says Neumann owns 2.43 million shares of class A stock and roughly 944,000 shares of class C stock, and that he controls 112.5 million shares of class B stock. The company's S-1 filing indicates that of that class B stock, some 11.72 million shares are actually owned by others, even though Neumann controls their voting rights.

So, from a financial standpoint, Neumann appears to own a total of about 104.16 million shares of WeWork, according to the disclosures as they stand now. 

The S-1 also said that in April, employees were able to sell class A and class B shares at a price of $54 per share. This sale was part of its investment deal with SoftBank. The S-1 also said the price was "above the fair market value of the shares." 

So we can infer that in April, four months after SoftBank's investment deal valued WeWork at $47 billion, its stock was worth not quite but somewhere around $54 a share.

If we use $54 a share, Neumann's 104.16 million shares are worth about $5.63 billion. This could be high. Forbes estimates Neumann is worth $4.1 billion.

Nevertheless, if the company's valuation drops to $18 billion, down 61%, and the value of his stock falls in line with that, then a stake that was worth $5.63 billion would be worth about $2.2 billion, a loss of $3.43 billion.

That's a lot of ifs, of course. Since we don't know how much of the company Neumann currently owns, or how much the shares are really worth, or what his stake will be after the IPO, we have no way of knowing exactly how much money he could actually lose.

Another 21.3 million shares at risk

However, we do know that Neumann faces potentially more losses than the value of his current stake.

Just before filing the IPO paperwork, the company also gave him an enormous grant of 42.5 million shares and some of those are tied to WeWork achieving soaring valuations.

As we previously reported, a chunk of this grant will vest simply if Neumann stays with the company, even if the company doesn't go public.

Plus, he's slated to get 7.1 million shares over three years if the company hits a market cap of $50 billion, another 7.1 million shares over three years if it hits $72 billion, and another 7.1 million shares over three years if it hits $90 billion.

The way it's looking, WeWork would have to produce some Herculean growth in the next three years to achieve those goals and unlock those tranches. 

So in theory, there are another 21.3 million shares in equity grants at risk. We can't even make an educated guess what that would be worth, but it would presumably be many millions.

Then again, Rosanna Landis Weaver, a compensation expert with the nonprofit shareholder-advocacy group As You Sow, previously told us such compensation agreements with CEOs were typically nonbinding.

The board, which is controlled by Neumann and will remain so after the IPO, can change its mind and the conditions of these stock awards. If WeWork doesn't hit those lofty valuation numbers, it may find another reason to reward its founder.

And, even if the company's IPO values WeWork at $18 billion, Neumann's stake will probably still be worth billions. Plus this doesn't account for the $700 million he is said to have already pulled out of the company via selling his shares to investors and borrowing against them.

SEE ALSO: WeWork replaced 43 million of CEO Adam Neumann's stock options with special 'profits interests,' and a compensation expert calls it 'unsettling'

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Netflix, Disney, and Roku tumble after Apple announces its streaming service will be cheaper than rivals (DIS, NFLX, ROKU, AAPL)

Tue, 09/10/2019 - 3:24pm

Apple's new streaming service is shaping up to cost less than its competitors. 

Shares of Disney, Netflix, and Roku slid on Tuesday after Apple announced its TV subscription offering would carry a modest price tag of $4.99 per month.

Rivals cost at least a few dollars more: Disney Plus costs $7 a month, and Amazon Prime Video is at least $9 a month. Hulu costs $6 a month for its basic plan, while Netflix and HBO each offer their services for more than $10 a month.

Disney is also going to offer a bundled service that includes Disney Plus, ESPN Plus, and ad-supported Hulu for $13.

Here's how much each company was trading down after the announcement on Tuesday, as of 3:22 p.m. ET: 

Apple also said customers who buy a Mac, iPhone, or Apple TV would receive a free year of Apple TV Plus. The company's streaming service has been widely viewed as one of its efforts to diversify its services business. 

Roku sells smart TVs and streaming players that allow people to access a variety of streaming platforms, including Netflix and Hulu. It also offers its own ad-supported TV and movie service called the Roku Channel. 

Apple's announcement comes as the streaming space is bracing for the launch of several new platforms. AT&T is expected to roll out a streaming service called HBO Max, while Comcast is planning to introduce its own ad-supported platform.

Read more: A CIO overseeing $333 billion says it's time to shelve one of the most trusted approaches to investing for the long haul. Here's what he says clients should do instead.

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Uber has fired more than 400 product and engineering employees in its second major round of layoffs this year (UBER)

Tue, 09/10/2019 - 3:06pm

Uber fired 435 employees from its product and engineering teams on Tuesday in its second major round of layoffs this year.

Some 170 people have departed the company's product team, with another 265 engineers leaving as well, an Uber representative confirmed to Business Insider. TechCrunch first reported the news.

In a statement, an Uber representative said the latest layoffs were another bid to find efficiencies in a now decade-old company and remain agile in a competitive field. 

"Our hope with these changes is to reset and improve how we work day to day—ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility," the representative said. 

"While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world."

Tuesday's layoffs follow a hiring freeze in some departments in the United States as Uber seeks to cut costs and become profitable to appease anxious investors. That hiring freeze has since been lifted, the representative confirmed. 

Most of the layoffs were in the United States, TechCrunch reported, with another 15% in Asia and Europe. The California employment development department told Business Insider there was no WARN notice, a form that large companies generally have to file for large layoff events, filed by Uber this week, potentially signalling that many layoffs occurred outside of the state in other offices. 

Read more: Uber marketing employees describe a 'bloodbath' when the company laid off 400 workers

Earlier in August, nervous engineers told Business Insider they feared they could be next. Other cost-cutting measures have included nixing the traditional balloons that employees receive on their work anniversaries and asking employees to be conscious about their travel expenses. 

Among the cost-cutting efforts, however, are new investments that will expand Uber's presence well beyond its Silicon Valley roots. The company this week announced a $200 million investment in a new Chicago office to house a growing freight team, as well as a new office in Dallas to house sales and human resources employees. 

Shares of Uber rose some 3.3% in trading Tuesday but remain more than 20% below initial trading prices following the company's massive IPO earlier this year. 

Are you an affected Uber employee? We want to hear from you. Get in touch with this reporter at grapier@businessinsider.com. Secure contact methods are available here. We can keep you anonymous. 

Here's Uber's full statement regarding Tuesday's layoffs: 

Our CEO has asked everyone on our management team a simple but important question: if we started from scratch, would we design our organizations as they stand today? After careful consideration, our Engineering and Product leaders concluded the answer to this question in many respects was no. Previously, to meet the demands of a hyper-growth startup, we hired rapidly and in a decentralized way.

While this worked for Uber in the past, now that we have over 27,000 full-time employees in cities around the world, we need to shift how we design our organizations: lean, exceptionally high-performing teams, with clear mandates and the ability to execute faster than our competitors.

Today, we're making some changes to get us back on track, which include reducing the size of some teams to ensure we are staffed appropriately against our top priorities. These were incredibly difficult calls as it means some of our employees no longer have a role, specifically around 170 people in our Product group and 265 people in Engineering, which is roughly 8 percent of those two orgs.

Our hope with these changes is to reset and improve how we work day to day—ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility. While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world.

More Uber news: 

SEE ALSO: Uber is opening massive new offices in Chicago and Dallas despite recent cost-cutting efforts

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Amex’s Business Platinum is one of the best cards for small business owners — the welcome bonus alone is worth up to $2,000 in free travel

Tue, 09/10/2019 - 2:42pm

  • There are a lot of business cards out there, but if you want a premium card with premium rewards and benefits, you can't go wrong with the Business Platinum® Card from American Express.
  • The card has been in my own wallet since December 2016, and I love the combination of benefits — from a large welcome bonus to a $200-per-year travel credit and access to more than 1,200 lounges in 130 countries.
  • If you're a regular jetsetter for work or pleasure, you will likely find the $595 annual fee well worth it.
  • The card's currently offering an elevated welcome bonus, so now is an especially good time to consider if it deserves a place in your wallet.

Small business owners have many options when choosing a card. When it comes to getting the biggest rewards and benefits, the American Express Business Platinum Card stands out from the rest. While the card carries a higher-than-average annual fee, frequent travelers get a ton of value back in benefits.

From up to a 100,000-point welcome bonus to up to $200 of airline fee credits each year and access to the American Express Global Lounge Collection, it's easy to earn back the annual fee and more in value from the Amex Business Platinum. Let's dive in and look at the details to help you decide if it makes sense for your small business needs.

Amex Business Platinum welcome bonus and points earning

The Amex Business Platinum card offers rewards in the form of Amex Membership Rewards points. These points are worth around 1.5 to 2 cents each when redeemed for travel. On the high end, that means the welcome bonus of up to 100,000 points is worth $2,000 in free or discounted travel!

To qualify for the full welcome bonus, you'll have to do quite a bit of spending. Earn 50,000 points after spending $10,000 in the first three months after opening a new account. You'll earn 50,000 more points after spending an additional $15,000 on purchases in the same period. That means you'll have to spend $25,000 on purchases in the first three months to get the full bonus.

This elevated welcome offer is only available until December 4, 2019, so don't wait.

Outside of the bonus, the card offers 5 points per dollar spent on flights and prepaid hotels at AmexTravel.com, 1.5 points per dollar on purchases of $5,000 or more (up to 1 million additional points per year), and 1 point per dollar on all other purchases. Depending on your business needs, you could earn a ton of points through regular spending.

Using the Amex Business Platinum's points

Using Amex Membership Rewards is easy, but it might take a little research to get the best value per point. The best value typically comes from transferring points to airline partners at a 1:1 ratio. Not all airlines offer that rate, so be careful when linking accounts and transferring points.

The easiest way to use points is to book travel directly through the Membership Rewards portal. You can search and book with a familiar-feeling system that works like many popular travel search websites. You usually get 1 cent per point for airfare and a little less value for hotels, rental cars, cruises, or vacation packages.

As a Business Platinum holder, though, you get an additional perk when booking through Amex Travel. If you use points to pay for eligible airfare, you get 35% of your points back as a bonus up to 500,000 points per year. That bonus can add up fast if you travel regularly for business.

You can also use points to pay your bill, shop at Amazon, pay for Uber rides, shop in an online mall, or buy gift cards. In general, you get less value per point with these redemption options.

Read more: 5 ways Amex cardholders can redeem their points — plus the method that gets you maximum value

American Express Business Platinum benefits

A large bonus was enough to entice me to sign up for this card for my own business a couple of years ago, but it was the lounge benefit that got me most excited to carry the card in my wallet.

This card comes packed with valuable benefits tailored to premium business travel. These benefits can be worth hundreds or thousands of dollars on top of the value you can get from your Membership Rewards points.

Here's a list of what you get with an Amex Business Platinum card. Note that many of these perks are identical to what you get with the Platinum Card® from American Express (the non-business version).

  • $200 travel credit — Get $200 back in fees from the major US airline of your choice. While it doesn't count toward airfare, you'll be reimbursed for things like luggage fees, upgrade charges, and in-flight purchases up to $200 per year. That is a big offset to the annual fee when it's used to its full potential.
  • Lounge collection — Get access to American Express Centurion lounges, a complimentary Priority Pass membership, and access to Delta Sky Clubs when flying Delta. Centurion and Priority Pass visits work when you're flying with any airline. Combined, that gives you access to more than 1,200 lounges in 130 countries.
  • Global Entry or TSA PreCheck credit — Every four years get your Global Entry ($100) or TSA PreCheck ($85) fee covered by your AmEx card. That's worth $20 per year with Global Entry; you have to renew every five years to keep your membership active.
  • No foreign transaction fees — You won't pay a 3% additional charge when you use the card outside of the United States.
  • Hotel status — Get instant Hilton Honors Gold and Marriott Gold elite status without meeting minimum stay or purchase requirements.
  • Fine Hotels & Resorts — Get free benefits including free Wi-Fi, room upgrades, free breakfast for two, late checkout, and a hotel amenity valued at $100 each stay when you book through Fine Hotels & Resorts. As Business Insider's David Slotnick experienced, these perks can elevate a luxury hotel stay.
  • Complimentary Boingo Wi-Fi — Tap into free internet access at more than 1 million Boingo hotspots at airports and other locations around the world with the American Express Preferred Plan, included for Platinum cardholders.

The card also offers the following business-oriented benefits, which aren't available on the personal Amex Platinum:

  • One year of Platinum Global Access from WeWork — When you enroll by December 31, 2019. This lets you use coworking spaces around the world.
  • Up to $200 in annual Dell statement credits — Get reimbursed for purchases at Dell. This is divided into two $100 credits: up to $100 in Dell statement credits between January and June, and up to $100 between July and December.

Benefits don't stop there, but those are the most valuable and popular. Cardholders also get access to a concierge service for travel planning services and exclusive entertainment and events. Few cards come close to what the Business Platinum card offers in terms of benefits.

Read more: I use Amex Offers to find exclusive discounts at stores and restaurants like Amazon and Starbucks — here's how the credit card benefit works

American Express Business Platinum costs and fees

Now that you know how much you'll get in benefits from the Amex Business Platinum, it's important to understand what it will cost you. Out of the gate, this card charges a $595 annual fee. 

That may give you sticker shock, but when you add up the value of Membership Rewards points, the $200 annual airline fee credit, a credit for Global Entry, and all of the free drinks and food you get when visiting airport lounges, it is easy to see how you can recoup most, if not all, of the annual fee each year.

This card is a charge card, not a credit card, so you pay your balance in full each month and don't pay any interest. If you prefer to carry a balance, you can enroll in the optional Pay Over Time feature for an additional cost. Pay Over Time currently charges 20.49% APR, a rate that can change any time. If you miss a payment or pay late, you'll pay a higher 29.99% variable rate penalty APR.

Late payments cost the higher of $39 or 2.99% of the past due amount. Returned payments cost $38 per occurrence.

There's no foreign exchange fee and this card does not offer balance transfers or cash advances, so you don't have to pay for those either.

Does the Amex Business Platinum card make sense for you?

There are a lot of business credit cards out there, but if you want a premium card with premium rewards and benefits, you can't go wrong with the American Express Business Platinum. The card has been in my own wallet since December 2016, and I love the combination of benefits. There's little that makes a hectic travel day easier than dropping into a Centurion Lounge for a drink and a bite.

If you don't travel regularly, you may not value the benefits this card provides. But if you're a regular jet-setter for work or pleasure, you'll likely find the $595 annual fee well worth it. When you used the card's benefits to the max, you may get thousands of dollars in value from this card each year. 

Click here to learn more about the Amex Business Platinum from our partner The Points Guy.

SEE ALSO: 5 exclusive travel benefits and events you can only access as an Amex Platinum cardholder

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CITI: Gold could shatter $2,000, reach all-time high if recession risks continue

Tue, 09/10/2019 - 2:27pm

  • Gold could hit historic highs and even break $2,000 per ounce in the next couple years if recession risks and rate cuts continue, analysts at Citi said in a Tuesday note.
  • The precious metal is up about 17% year-to-date as trade war tensions and downturn fears drive investors toward the "safe haven" asset.
  • The analysts' positive outlook sees risks from the possibility of a surprise trade deal between the US and China, and from possible hawkish decisions from the Federal Reserve.
  • Watch gold trade live here.

Gold could hit $2,000 per ounce in the next year or two if lower interest rates and recession fears stick around, Citi analysts said in a Tuesday note.

The analysts' "medium term" target represents a new historic high for gold, which last peaked in August 2011 when it reached $1,830.55 per ounce.

The coveted metal surged through 2019, and is up about 17% year-to-date. Geopolitical tensions, lower global interest rates and looming recession risks fueled the run-up, Citi analysts said. Though the bank expects "profit taking" in the short term, it sees gold trading "stronger for longer" in the next three years.

"We find it reasonable to consider an increasing probability that bullion markets can re-test the 2011 to 2013 nominal price peaks and trade to $1,800-2,000 per ounce by 2021 and 2022 on the back of a US business cycle turn towards slower growth/recession on top of election uncertainty," the team led by Aakash Doshi wrote.

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The note upgrades the bank's fourth-quarter target price for gold to $1,575 per ounce, and its 2020 price target to $1,675. Gold traded at $1,491.53 as of 1:35 p.m. ET Tuesday.

Citi's rosy outlook for gold does see "clear risks" from a hawkish pivot by the Federal Reserve and upgrades in global growth expectations, the analysts noted. A surprise deal ending the trade war would suggest a price peak at $1,550 per ounce, they added.

The precious metal is a popular "safe haven" investment during times of economic volatility, as its physical scarcity and steady demand appeals to those looking to escape tanking markets.

The People's Bank of China has been stockpiling gold in its reserves for eight months in a row, signalling the nation expects continued market volatility and a prolonged trade war with the US.

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A majority of Americans think a recession will strike in the next year — and they're blaming Trump's trade war

Tue, 09/10/2019 - 2:12pm

  • Americans have grown increasingly concerned that the trade war with China will raise prices and tip the economy into a recession.
  • Six in 10 Americans in an ABC News/Washington Post poll released Tuesday said they think a recession is likely in the next year. About 43% said they think trade policies have increased the chances.
  • That undermines a core source of support for President Donald Trump as he campaigns for reelection.
  • Visit the Markets Insider homepage for more stories.

Americans have grown increasingly concerned that the trade war with China will tip the economy into a recession within the next year, undermining a core source of support for President Donald Trump as he campaigns for reelection.

Six in 10 Americans in an ABC News/Washington Post poll released Tuesday said they think a recession is likely in the next year. The same amount said they were concerned that US tariffs on thousands of Chinese products over the past year would raise prices at home. About 43% said they think trade policies have increased the chance of a recession.

The tit-for-tat tariff disputes the Trump administration ignited with China and other trading partners last year have cast a thick cloud of uncertainty over the economy, which had already been expected to cool in the coming months. 

That has chipped away at one of Trump's strongest campaign issues: the economy. The poll found that the president's approval rating among voting-age Americans stood at 38%, down 6 points from July and slightly below his career average. About 56% said they disapproved of Trump's performance in office.

"The main thing driving this concern among Americans is just looking out their windows," said Austan Goolsbee, who served as a chairman of the Council of Economic Advisers in the Obama administration. "They are paying for tariffs, and the economy is slowing down."

The US and China have escalated tariffs several times in recent months, with far more consumer products targeted than in previous tranches. Trump has vowed to expand duties in December to virtually all Chinese imports, including electronics and other sensitive goods.

"For many Americans, President Trump's trade war is only now starting to directly hit home," said Chad Bown, a senior fellow at the nonpartisan Peterson Institute for International Economics. "The worst price hikes are likely still to come for the American consumer."

Trump disputed the poll's results without evidence on Tuesday morning.

"ABC/Washington Post Poll was the worst and most inaccurate poll of any taken prior to the 2016 Election," the president wrote on Twitter. "When my lawyers protested, they took a 12 point down and brought it to almost even by Election Day. It was a Fake Poll by two very bad and dangerous media outlets. Sad!"

Read more: Investors have triggered a recession signal with a perfect 50-year track record — and one expert says years of 0% market returns could be in store

SEE ALSO: The White House says the trade war isn't hurting the US. The most recent data suggests otherwise.

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The Future of Payments 2018

Sun, 09/08/2019 - 9:02pm

The payments industry is transforming.

Noncash payments methods are quickly becoming the norm.

Business Insider Intelligence projects digital payments to continue to grow through 2023 and beyond.

This shift has created a battle between incumbents and startups vying to become the leaders of the future of payments.

While incumbents have massive scale to lean on, startups typically offer a much friendlier user experience. Whoever can master both first will win the battle.

That will require navigating four key digital transformations: diversification, consolidation and collaboration, data protection and automation.

In this FREE section of The Future of Payments 2018 slide deck from Business Insider Intelligence, we look at the first key digital transformation: diversification.

Subscribe to Business Insider Intelligence today for full access to the complete deck.

As an added bonus to this FREE section, you will gain immediate access to our exclusive BI Intelligence Daily newsletter.

To get your copy of this free slide deck, click here.

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Goldman Sachs analyzed 4,481 IPOs over 25 years and concluded that these 5 attributes can make or break a newly public company

Sun, 09/08/2019 - 7:45pm

  • The public markets have seen a long-awaited influx of initial public offerings this year. 
  • While many IPOs are outperforming the market, some of the most high-profile new listings such as Uber and Lyft have struggled.
  • Goldman Sachs analyzed 4,481 IPOs over 25 years and determined the five attributes that are a key to a successful IPO. 
  • Visit the Markets Insider homepage for more stories. 

2019 has been a monster year for initial public offerings. 

Darlings of Silicon Valley such as Uber, Lyft, and Pinterest have entered the public markets after years of raising private capital. 

The broader IPO market is also outperforming most of the major stock indexes. The Renaissance IPO ETF, which tracks the performance of new listings, has climbed more than 33% since the beginning of the year. Comparatively, the S&P 500 has risen about 19%. 

Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.

But some of the most closely followed public offerings are struggling. Uber and Lyft have both dipped below their offering prices. Investors have begun to question the rising costs of  their business models, and whether or not they can ever achieve sustainable profitability. 

The same questions are being asked about upcoming public offerings from Peloton and WeWork. Many of the venture-backed startups that are approaching the public markets are pursuing new, unproven business models. That can make it difficult for investors to predict the success of a particular IPO. 

Goldman Sachs analyzed more than 4,400 IPOs over 25 years and determined the most important attributes that can determine the success of recent public offering.

Here are the five key factors the firm says can make or break an IPO: 

Sector and industry

During the tech-IPO boom in the late 1990s and early 2000s, close to half of  new listings were either tech, media, or telecommunications companies. 

The sector breakdown for IPOs has changed considerably since the tech boom, according to Goldman Sachs. Tech, media, and telecommunications companies accounted for 19% of new listings since 2010, while health care IPOs surged to 34%. 

The growth in health care IPOs was driven by the rise in public offerings from biotechnology companies. Despite the swelling amount of listings, health care IPOs have performed the worst of any sector since 2010, according to Goldman Sachs. 

 



Firm age

According to Goldman, the age of company isn't a "significant indicator" of three-year IPO outperformance, but younger firms typically see faster sales growth. 

"The median firm founded 0-5 years before IPO reported sales growth of nearly 50% five quarters after the offering compared with 30% revenue growth for firms aged 5 to 15 years and 19% for firms older than 15 years," the firm said in a recent client note.

Tech companies over the last decade have waited historically-long to enter the public markets. Goldman said over the last two years the average tech, media, or telecommunications company has waited 13 years to go public. 

For example, PagerDuty was founded in 2009 and went public earlier this year, more than a decade after it started. 



Valuation

Many investors have raised questions about the valuations of companies that have gone public this year. 

"The most commonly raised concerns are that new firms are too expensive relative to their fundamentals and that demand for equity in new issues will diminish demand for the rest of the equity market," the firm said. 

WeWork, one of the most anticipated listings of 2019, has seen its valuation come under scrutiny in recent months.

The company was last valued at $47 billion during a private fundraising round, but now the company is rumored to be seeking between a $20 billion and $30 billion valuation for its upcoming public offering. 

According to Goldman, IPO's become more expensive compared the rest of the market shortly before a recession. At the height of the tech bubble in the early 2000's, IPO valuations soared past that of the median S&P 500 company. 



Path to profitability

A hallmark of this year's IPO market has been the concern about the profitability of the companies going public. High-growth, venture-backed companies like Uber and Lyft are burning through piles of cash to grow their businesses. 

According to Goldman Sachs, IPO investors are intently-focused on when firms will achieve profitability. 

"In the current IPO cycle, profitability in years two and three has indicated outperformance," Goldman said in the report.

The firm added: "Since 2010, IPOs with annualized sales growth above 40% from year 1 to year 3 and positive net income in year two have generated positive excess returns adn the highest likelihood of outperformance." 



Sales growth

Sales growth has been the strongest determinant of IPO outperformance, according to Goldman Sachs. 

"Since 2010, IPOs with annual sales growth greater than 20% have been more likely to outperform Russell 3000 over three years than a comparable, slower-growing IPO," the firm said. 

Revenue growth usually declines quickly during the first five years after a company enters the public markets, according to Goldman. High-growth companies often sacrifice profitability to pursue growth and gain market. That growth often slows in an effort to achieve profitability. 

Beyond Meat, a plant-based meat provider, has experienced massive sales growth this year and its share price has risen more than 500% in response. 



The CEO of Ace Hardware explains how his company, which boasts more stores than Home Depot and Lowe's combined, is going all in on the 'do-it-for-me' market

Sun, 09/08/2019 - 7:21pm

  • Ace Hardware announced its acquisition of Handyman Matters, a home repair services franchise, on Friday. 
  • CEO John Venhuizen told Business Insider that his hardware cooperative is looking to tap into the "do it for me" market.
  • Venhuizen said that Ace Hardware customers have been "basically begging" the company to delve into the home improvement services sector.

Ace Hardware is jumping straight into the "do it for me market" with its acquisition of home improvement service chain Handyman Matters.

Business Insider spoke to Ace CEO and president John Venhuizen about what this acquisition means for the hardware retailers' cooperative, which now boasts more locations than the combined store count of competitors' Home Depot and Lowe's.

He said that the timing seemed right for the move, given Ace's growth trajectory. The Oak Brook, Illinois-based business opened 900 new stores in the last five years alone, bringing its total count to 5,300 globally. The majority of those locations — 4,600, to be exact — are in the United States.

"We feel like we have an incredible amount of momentum," Venhuizen told Business Insider. "There are not many retailers in the United States that are opening stores. Many are shutting them. We opened more than 900 in the last five years and we'll open more than 800 in the next five. We feel like we're aligned with what the consumer wants."

Venhuizen added that the company is on its 10th straight year of same-store sales growth. So where does Handyman Matters — which will be rebranded as Ace Handyman Services — fit into all that?

Read more: A Lowe's executive explains how the home-improvement retailer is making the most of its partnership with the NFL

The Colorado-based company boasts 57 franchisees across 23 states, employing a workforce of 250 handymen ready to help out customers with carpentry, flooring, painting, and other home improvement services. The Ace Hardware CEO says his retail's acquisition of the business represents a foray into the "do it for me" market. 

According to Venhuizen, customers have been "basically begging" Ace Hardware to launch in-house home improvement services offerings, and it aligned with the business's goal of being "the helpful place."

What's more, it ties in perfectly with the rise of the "do it for me" market; the contingent of home improvement shoppers who are looking to hire pros to do the heavy lifting on project through trusted retailers.

Venhuizen said that there's not much of a difference between the "do it for me" customers and the "do it yourself" shopper. Ultimately, it comes down to the customer's bandwidth for a new home improvement or maintenance task, level of expertise, and the nature of the project itself.

"It's this natural fit of bringing 'helpful' to the home, so that we have a service provider that can actually do it for the consumer," he said. "It fits naturally with what we're known for and the trust that our brand has engendered in these communities."

SEE ALSO: Home Depot execs reveal why the retailer is sharpening its focus on women shoppers

DON'T MISS: A look back at Lowe’s journey from small family hardware store to retail giant

SEE ALSO: A Home Depot exec explains why chasing trends is overrated in the home decor space

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Chinese exports to the US tanked in August as Trump's trade-war tariffs hit demand

Sun, 09/08/2019 - 7:12pm

  • China's exports to America tanked 16% in August as Donald Trump's tariffs sapped demand for Chinese goods in their biggest foreign market.
  • Chinese imports of US goods dropped by about 22%, suggesting American exporters are also suffering from the trade war.
  • The declines will pile more pressure on Chinese authorities to stimulate the economy, days after they announced banks' reserve requirements would be cut to their lowest level since 2007.
  • View Markets Insider's homepage for more stories.

China's exports to America tanked 16% to $44.4 billion in August — a sharp acceleration from their 6.5% drop in July, Reuters said — as Donald Trump's tariffs sapped demand for Chinese goods in their biggest foreign market.

However, Chinese imports of US goods dropped by about 22% to $10.3 billion, official customs data showed. The steep drop suggests US exporters are also suffering from the trade war between the world's two largest economies.

Those declines are likely to accelerate in the coming months as both sides ramp up tariffs.

The Trump administration slapped a 15% duty on $112 billion worth of Chinese goods on September 1. If a trade agreement isn't reached, it plans to hike existing tariffs on $250 billion of Chinese goods from 25% to 30% at the start of October, and impose duties on another $160 billion of imports in mid-December. 

Meanwhile, China has targeted about $120 billion of US imports so far. It retaliated with its own tariffs at the start of September, and has a second batch planned for mid-December. Chinese officials are set to attend trade talks in Washington next month in the hope of striking a deal and avoiding those increases.

China's overall exports slid 0.1% in August, upending analysts' expectations of 2.2% growth, Bloomberg said. The surprise downturn could ramp up pressure on Chinese authorities to stimulate the economy. On Friday, the central bank said it would cut banks' reserve requirements, —  the amount of cash they have to keep on hand — to the lowest level since 2007 in a bid to boost demand.

SEE ALSO: American companies said they cut more than 10,000 jobs in August because of trade tensions

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THE MONETIZATION OF OPEN BANKING: How legacy institutions can use open banking to develop new revenue streams, reach more customers, and avoid losing out to neobanks and fintechs

Sun, 09/08/2019 - 6:02pm

Open banking has arrived, and it's transforming the UK's banking landscape — next up could be the world. Regulatory efforts in the UK are transforming retail banking, reshaping incumbents' relationships with customers, and easing entry for fintechs.

Regulators across every continent are responding with actions of their own. Underpinning open banking initiatives is the idea that ownership of transactional data belongs to consumers instead of incumbent financial institutions.

The implications of this change for established lenders in the UK are significant. For those that act, open banking presents substantial revenue-generating opportunities.

But the consequences of inaction are even more severe: Business Insider Intelligence estimates that by 2024, £6.5 billion ($8.4 billion) of UK incumbents' revenues will be under threat of being scooped up by forward-thinking companies like fintechs and neobanks. Yet even through the financial incentives to act are clear, many incumbents are struggling to determine the best path to monetization. In fact, some aren't even sure what their options are.

In The Monetization of Open Banking report, Business Insider Intelligence identifies monetization strategies incumbents have at their disposal, describes how they can determine the best approach for their specific needs, and outlines actionable steps they need to make their chosen open banking initiative successful.  

The companies mentioned in this report are: Allied Irish Bank (AIB), Bank of Ireland, Barclays, Danske Bank, HSBC, Lloyds Banking Group, Nationwide, RBS Group, and Santander, Monzo, Starling, ING, Yolt, Fidor, BBVA

Here are some of the key takeaways from the report:

  • Driven by regulatory action, open banking is transforming the UK's banking landscape, but it's also gaining momentum globally.
  • For incumbents, open banking entails a significant threat to their entrenched position.
  • But for forward-looking banks, there are substantial opportunities for revenue generation, both directly and indirectly.
  • To seize these opportunities — and avoid losing revenue to fintechs and neobanks — it's critical that legacy players focus their efforts in the right direction, including identifying their strategic priorities.

 In full, the report:

  • Details the UK's Open Banking regulation in depth.
  • Forecasts the size of the UK's Open Banking-enabled banking industry over the next five years.
  • Discusses the types of monetization opportunities available for incumbents, as well as non-direct revenue-generation opportunities.  
  • Provides actionable steps on how banks can best determine the best strategic approach from the options available.

Interested in getting the full report? Here are two ways to access it:

  1. Purchase & download the full report from our research store. >> Purchase & Download Now
  2. Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now

The choice is yours. But however you decide to acquire this report, you've given yourself a powerful advantage in your understanding of the fast-moving world of fintech.

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Bitcoin 101: Your essential guide to cryptocurrency

Sun, 09/08/2019 - 1:02pm

Bitcoin is everywhere.

The cryptocurrency is seemingly in the news every day as investors and businesses try to understand the future of this digital finance.

But what is Bitcoin all about?

Why is it suddenly on every financial news program?

And what does it mean to you?

Find out the answers to these questions and more in Bitcoin 101, a brand new FREE report from Business Insider Intelligence.

To get your copy of the FREE slide deck, simply click here.

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The tiniest apartment in San Francisco is just 161 square feet and will cost you over $2,200 a month — here's a look inside

Sun, 09/08/2019 - 10:04am

San Francisco is home to the most expensive rental market in the country

Business Insider's Hillary Hoffower reported in May that the typical rent in San Francisco exceeds $4,500 — which is more than 2.5 times the typical national rent. 

Read more: The salary you need to comfortably afford rent for a two-bedroom apartment in the 25 largest US cities, ranked

The city is so outrageously expensive that some people are dishing out $1,200 a month for bunk beds in co-living buildings to save on rent

With the help of the rental platform Zumper, Business Insider was able to track down the tiniest apartment currently for rent in San Francisco. For $2,295 a month, you can rent a 161-square-foot studio in a swanky downtown neighborhood, but you may feel a little cramped.

Business Insider called and emailed the listing agent to find out how long the studio has been on the market but did not immediately receive an answer. A contact at RentSFNow  — the leasing side of Veritas Investments, the company that previously managed the listing — told Business Insider that the building had recently changed ownership and that contact information on the listing had not yet been updated.

Keep reading for a look inside.

SEE ALSO: Here's how much it costs to rent a one-bedroom apartment in 15 major US cities

DON'T MISS: NYC landlords were caught renting out 'micro rooms' for $600 a month. Here are 7 places in the US where you can legally rent an apartment for that much — or less.

The tiniest apartment for rent in San Francisco is a studio located in Lower Nob Hill. The apartment is within walking distance of the Financial District and North Beach.

Source: Google Maps



The studio spans just 161 square feet and is currently available for $2,295 a month.

Source: Zumper



It includes all the living essentials in one small room — sort of. For one thing, the studio doesn't have a bathroom. The future renter will have to use a shared bathroom.

Source: Zumper

 



The sink, which can be seen below, is right next to the studio's front door — and the kitchen seems to consist of that, a mini fridge, and not much else.

Source: Zumper



The studio did manage to squeeze in some space for a triangular closet, which is also next to the front door.

Source: Zumper



Beyond that, the studio has one window and a space heater. According to the listing, the unit comes with a dishwasher and in-unit laundry, but we couldn't find them in the listing photos — or, frankly, imagine where they could possibly fit.

Source: Zumper



$2,295 may seem outrageously expensive for a 161-square-foot studio — and it is. San Francisco is home to the most expensive rental market in the country.

Source: Zumper



But not all major cities are as wallet-draining as San Francisco. Just consider Raleigh, North Carolina, where the median rent for a one-bedroom apartment is $975 a month.

Source: Business Insider



Meanwhile, if you venture further up the Pacific Coast from San Francisco, the median rent for a one-bedroom apartment in Portland is $1,595 a month.

Source: Business Insider



The startups that hack your devices, WeWon't, and Goldman Sachs ruffles feathers

Sun, 09/08/2019 - 9:42am

Hello!

The Israeli cybersecurity firm NSO Group has been accused of selling sophisticated digital surveillance technology to Saudi Arabia and other countries that are suspected of using it to attack dissidents and journalists.

It's also very profitable. 

Becky Peterson this week lifted the lid on the secretive startup, revealing NSO Group's profits and customer breakdown for the first time, and shining a light on a web of more than a dozen similar startups in Israel, many of which operate in secret, that sell attacks against routers, computers, smart speakers, and other digital devices.

As she reports:

These companies often describe their wares as "lawful interception" or "intelligence" tools, though this hardly tells the full story. They all sell tools that take devices and turn them against their users to secretly spy without leaving a trace.

Whatever you call this technology, business is booming. Governments and law-enforcement agencies around the world are paying millions of dollars. And startups both inside of Israel and out are ready to sell.

You can also read about how Becky got inside the NSO Group and the offensive cyber world in this Q&A

In other news, WeWork's IPO appears to be on rocky ground, and the company could cut its valuation by as much as half. Here's our latest:

What would you like to read more of? Let me know!

-- Matt

Watch

In Business Insider's latest webinar, Headset CEO Cy Scott walks through how he put together the pitch deck that helped him raise a $12 million Series A. Scott was joined by Poseidon Asset Management partners Emily and Morgan Paxhia, who led the round. 

You can watch the full webinar right here

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Furious Peloton members are skewering the company's delivery partner over broken $2,000 bikes and scratched hardwood floors — and the company is starting to take note

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