Last fall, Wells Fargo was fined $185 million after regulators found the bank guilty of opening as many as 2 million retail bank accounts without customers’ approval. Over 5,000 employees tied to the scandal were fired. In a recent addition to this total, the head of the bank’s consumer credit-card business and three other senior managers were also fired. The bank announced in a statement on Tuesday that it was firing: Shelley Freeman, former Los Angeles regional president; Pam Conboy, Arizona lead regional president; Claudia Russ Anderson, former community bank risk chief and; Matthew Raphaelson, community bank strategy and initiative…
Author: Anahit Moumjian
A quarterly report on household debt and credit by the Federal Reserve Bank of New York revealed that student loan debt now totals over $1.3 trillion as of December 2016. The report, released in February of 2017, notes the $31 billion increase in outstanding student loan balances. MarketWatch’s live tracker shows student debt increasing by $2,667.2 per second, based on data stretching back to 2006. According to the Federal Reserve Bank’s data, 10% of the national debt balance comes from student loans, second only to mortgage debt, which is 67% of the pool. Auto loans come in third at 9%…
Los Vegas Sands Corps CEO and Chairman Sheldon Adelson announce on Friday that a casino resort project in Japan could cost up to $10 billion to build. “It would be at least what we paid in Singapore, U.S. $6 billion including the land, but it could be as much as U.S. $10 billion,” said Mr. Adelson in a statement. Los Vegas Sands developed and currently operates the Singapore Marina Bay Sands casino property. The announcement on Tuesday was given in Tokyo at CLSA’s Japan Forum, a conference for investors organized by brokerage CLSA. Previously, Adelson said he expected resorts integrated…
Alibaba Group Holding has teamed up with Shanghai Bailian Group in executive chairman Jack Ma’s latest step toward shaking up old-fashioned retail with technology. Bailian is currently one of China’s largest supermarket and department store chains. Shares of the company surged to their daily 10% limit on Monday after the China Securities Journal reported on the partnership. Alibaba’s chief executive officer Daniel Zhang wrote in an email statement, “Our partnership with Bailian is an important milestone in the evolution of Chinese retail, where the distinction between physical and virtual commerce is becoming obsolete.” The online wholesale supplier plans to help…
According to a new report, congestion caused by cheap gas and a surging economy has cost U.S. motorists almost $300 billion last year. Out of the 1,064 cities studied by transportation analytics firm INRIX, Los Angeles had the worst traffic in the world. The average driver in Los Angeles wasted 104 hours sitting in gridlock during the busiest commute times last year and lost about $2,408 per person in wasted fuel and productivity. Moscow had the second-worst congestion, followed closely by New York and San Francisco. Motorists in New York spent an average of 89 hours in traffic last year during peak periods.…
Ivanka Trump’s perfume jumped to the top Amazon’s bestseller list in the “Perfumes & Fragrances” category last week, weeks after Nordstrom announced it was dropping Ivanka Trump-branded items from its store. The Ivanka Trump Eau de Parfum spray also received a vast number of reviews on its product page. Some comments remained apolitical, while other reviewers mentioned President Trump or his daughter Ivanka specifically. A user named “DeeJay” wrote in a five-star review of the perfume, “Amazing! Smells great. Get many compliments and questions on what it is and where I got it! Plus I am supporting President Trump and his family! Make…
Ford confirmed last week that two manufacturing plants in Mexico will see expansion, despite President Trump’s insistence on keeping manufacturing jobs in the U.S. Mark Fields, CEO of Ford, along with other manufacturing and auto CEOs met with Trump in his early days in office to discuss strategies to bring back American jobs. Trump took to Twitter after the meeting to announce its success, thanking Ford for “scrapping a new plant in Mexico and creating 700 new jobs in the U.S.” Trump continued in his tweet “This is just the beginning – much more to follow” Fields said the meetings were a…
Stockholm-based startup Soundtrack Your Brand has raised $22 million in funding for global expansion and tech build-up. The company, started by an ex-Spotify executive and a co-founder of Beats, has already seen significant growth on its aim to provide music streaming services to businesses. The company’s client list includes McDonald’s, TAG Heuer, and Toni & Guy along with operations for chains like Starbucks as well as thousands of other smaller businesses. It also operates Spotify Business in Sweden, Norway, and Finland. While not providing specific revenue or customer numbers, the company reports that revenue and customer base have both grown…
Fannie Mae announced on Friday that it will pay the U.S Treasury $5.5 billion in dividends next month due to its double in profits last quarter. The company reported a net income of $5.05 billion in the fourth quarter, up from $2.5 billion in the year previous. Since receiving $116.1 billion in government bailouts between 2008 and 2011, the government-controlled mortgage company has paid the Treasury $154.4 billion in dividends. Freddie Mac, sibling to Fannie Mae, also received government help during the recession. On Thursday, Freddie Mac said it would pay the Treasury a dividend of $4.5 billion next month…
Verizon is close to a renegotiated deal to buy Yahoo! Inc.’s internet properties for $250 million to $350 million less than the original agreed-upon price of $4.83 billion, according to a source familiar with the matter. Verizon has spent the last year trying to convince Yahoo to amend the terms of the agreement to reflect the economic damage following two cyber attacks. Verizon and Altaba Inc., the renamed entity of what will remain of Yahoo after the deal, are expected to share any continuing legal responsibilities, according to people briefed on the matter. The revised agreement has yet to be finalized, but an…
Documents filed with the Securities and Exchange Committee on Thursday indicate Snap Inc, Snapchat’s parent company, is looking to price its initial public offering between $14 to $16 a share, setting its valuation below expectations. The filing confirms earlier reports that Snap sets itself a valuation of $19.5 billion to $22.2 billion. The regulatory filing also confirms Snap’s aim to sell 200 million class A shares. The class A stock carries no voting rights. Selling shareholders include CEO Evan Spiegel, co-founder Bobby Murphy, and former CEO Michael Lynton–55 million shares in total. These sales would raise approximately $3.2 billion, $2.1 billion…
Warren Buffett’s conglomerate holding company Berkshire Hathaway bought stock aggressively in last year’s fourth quarter, almost quadrupling its stake in Apple and increasing its stake in the four biggest U.S. airlines by a factor of seven. As of Dec. 31, Berkshire owns 57.4 million shares of Apple, now worth $7.74 billion, according to a regulatory filing. Three months earlier the company owned just 15.2 million shares. Berkshire’s initial investment in the iPhone maker attracted attention last year, due to Buffet’s widely-known aversion to technology companies, excluding IBM. Buffet explains his avoidance is a result of feeling outside of his zone…
U.S. Treasury yields climbed on Wednesday as the economic outlook strengthen and commentary by Federal reserve officials increased expectations of a hike in interest rates in March. A gauge of major world markets also rose to a record. January saw U.S. retail sales exceed expectations, and other data showed records of the biggest increase in consumer prices in nearly four years, as well as a rise in manufacturing output. These reports come on the heels of Janet Yellen’s Tuesday comments, repeated on Wednesday to the House of Representatives. The U.S. Fed Chair said that the central bank would most likely have…
Seattle Genetics and Immunomedics signed a development and licensing agreement on Friday that required Seattle Genetics to pay Immunomedics $250 million up front for the license of IMMU-132. The drug is Immunomedic’s proprietary solid tumor therapy candidate, which is currently in development and on course to file for accelerated approval by mid-2017. The deal is valued at $2 billion in total, $1.7 billion of which is to be paid by Seattle Genetics in the form of clinical development, manufacturing, and sales. Immunomedics retains the right to consider other offers before closing, while Seattle Genetics has the first right of refusal…
Rumors of Amazon’s plan to begin selling its own brand of $10 bras was initially seen as a play against Victoria’s secret. However, a note published by Morgan Stanley explains that Amazon’s budget bras are more of a threat to big box retailers like Walmart and Target, since Victoria’s Secret typically sells bras around $40. Morgan Stanley’s note also points to the fact Victoria’s Secret continues to own about 27% of the market even though Walmart and Target already intimate apparel at lower prices. This indicates that people who shop at Victoria’s Secret value service and product quality over low prices,…
Verizon introduced an unlimited data plan for the first time since 2011. The nation’s largest wireless provider announced the move away from monthly data allowances on a TV advertisement during Sunday’s Grammy Awards broadcast. The plan, starting at $80 per month, brings Verizon up to speed with competitors that already had unlimited data offerings, like AT&T, T-Mobile, and Sprint. “Verizon was sitting out there as the only one that didn’t have an offering,” said senior equity research analyst David Heger. Sprint and T-Mobile released marginally cheaper unlimited plans last summer, which helped bring in millions of new customers. According to Verizon’s…
While big business, for the most part, has welcomed President Trump’s promised tax cuts and lax regulations, Amazon withholds its enthusiasm. The recent stock market rally suggests traders believe U.S. companies will prosper due to Trump’s trade policies, but Amazon’s regulatory filing on Friday implies the opposite. In its annual report with the Securities and Exchange Commission, Amazon said that its business faces a new set of risks, that of “trade and protectionist measures.” The filing does not explicitly state that these risky measures are a part of President Trump’s proposed policies, although they clearly reference the possible changes that could…
The German central bank completed the transfer of $13 billion in gold reserves on Thursday. Germany’s gold had remained in New York for decades, spanning back to the Cold War. The Bundesbank announced this transfer on Thursday was part of an effort to build public “trust and confidence”. Officials explained that the transfer of its gold bullion is not a response to concerns about President Trump’s monetary policy. Rather, it is an acknowledgment of the shift in political and economic climate on a broader scale, like the rising populist pressure within Germany and throughout Europe. Carl-Ludwig Thiele, a Bundesbank board member,…
Online retail giant Amazon disclosed in a filing Thursday that it “processed and delivered” a number of consumer products to unidentified individuals and groups linked to Iran. Amazon warned that it may be penalized after a regulatory review of the activities. According to a regulatory filing, from 2012 to 2016, the company “processed and delivered orders of consumer products for certain individuals and entities located outside Iran covered by the Iran Threat Reduction and Syria Human Rights Act (ITRA).” The goods sold ranged from pet food to software. The company claims to have reported the transactions to the U.S. Treasury Department’s…
In an attempt to boost subscribers, New York Times Co. is working with Spotify Ltd. to give new digital subscribers to the paper complimentary access to the world’s largest music-streaming service. The companies announced on Wednesday that readers who buy one-year online subscriptions to the New York Times will also get free unlimited access to Spotify’s premium service, which costs $120 a year. Meredith Kopit Levien, the Time’s chief revenue officer, said that the unconventional partnership between the 165-year-old print publishers and the disruptive music company is a natural fit. The companies will promote the subscription package on their respective…
Expedia CEO Dara Khosrowshahi ended a conference call about the company’s fourth quarter earnings with an ominous message. “Just a big thank you to our global employee base for an improved 2016 and certainly an improved end to the year,” he said, adding, “And hopefully we will all be alive to see the end of next year.” Though not explicitly stated, the CEO’s outspoken opposition to Trump from within the tech industry informs these unusual remarks. Early on in the call, Khosrowshahi voiced concern over the recently overturned travel ban, “We were frankly worried about the chaos and volatility and the…
A post early Thursday morning on Medium from a Tesla employee alleges that he and his coworkers have endured poor working conditions. The employee, Jose Moran, lists grievances such as “excessive mandatory overtime,” low pay, and frequent injuries sustained at Tesla’s manufacturing facility in Fremont, California. “Preventable injuries happen often. In addition to long working hours, machinery is often not ergonomically compatible with our bodies,” Moran wrote in his blog post, “There is too much twisting and turning and extra physical movement to do jobs that could be simplified if workers’ input were welcomed. Add a shortage of manpower and…
TV manufacturer Vizio settled a $2.2 million lawsuit with the Federal Trade Commission. In the suit, the FTC alleged that Vizio secretly collected viewing data and sold it to third parties for years. The Attorney General of New Jersey and the director of the state’s Division of Consumer Affairs joined the FTC in the suit against Vizio and subsidiary Inscape Services. Though the penalty may appear lax, the suit itself may cause Vizio’s brand irreparable harm. The data collected was not anonymized, according to the FTC blog post. Vizio sold data detailing a record of shows watched, second by second, along…
Yelp’s fourth quarter results on Thursday revealed a solid pattern of growth, although a review and rating site’s light guidance caused shares to drop. Over the last year, shares of Yelp surges 15%; after hours trading following the guidance saw shares drop 10% to $37.41. Yelp forecasts adjusted earnings between $25 million to $28 million on revenue of $195 million to $199 million for the first quarter. This is below the analyst expectation of $30 million in profits on $204 million in revenue. Yelp’s latest quarter, however, beat expectations. Net income rose 10 cents per share to $8.3 million, compared…
Toyota Motor Corp and Suzuki Motor Corp announced on Monday their plan to trade parts supply and R&D expertise. This agreement will help further their respective expansion into emerging markets and reconcile themselves with rapidly growing technological sophistication. In a joint statement, the companies said, “Toyota and Suzuki have agreed to work toward the early realizations of a business partnership.” They also singled out procurement, environment, and safety technology as possible areas of cooperation. Toyota could stand to benefit from Suzuki’s supply chain, which has helped the latter dominate the massive auto market in India. Suzuki, in turn, could also…
Amazon has been scouting London for prime central locations that could be used as Amazon Go convenience stores, according to the Sunday Times. The tech firm registered a UK trademark for the Amazon Go stores in December, suggesting it is advancing plans to bring futuristic convenience stores to Britain. The company first revealed its intention to open grocery stores last December in a video for the service. It is currently testing its first Amazon Go with a trial store in Seattle. The Seattle store is not yet open to the public and is only used by employees. The store is expected to open…
Over the last few years, the price of an emergency medication commonly referred to as an “antidote” for opioid overdoses has skyrocketed. The device, Evizio, is the only auto-injector of nalaxone. Nalaxone counteracts the effect of opioid overdoses by preventing the drug from interacting with the brain’s receptors. Evzio manufacturer Kaleo also owns Auvi-Q, the emergency epinephrine device recently brought back as a competitor to the EpiPen in the U.S. Evzio has been on the market since 1971, though it was only approved in the U.S. in 2014. Initially, the list price was $575 for a two-pack. Now, the price a…
Newly released documents show that President Donald Trump still has a direct connection to his business interests through a revocable trust. The trust is legally controlled by his oldest son and a longtime executive of the Trump Organization. President Trump is the sole beneficiary of the trust and retains the legal power to revoke it at any time, according to documents obtained through a public records request. Published online by the investigative news service ProPublica, the documents show that the Donald J Trump Revocable Trust, tied to his social security number as the taxpayer identification number, was amended three days before…
Amazon’s fourth-quarter earnings on Thursday beat analyst expectations, but its revenue fell short of estimates. Holiday season sales did not bring in expected revenue, as Reuters estimated the company would earn $44.68 billion in revenue, while it actually earned $43.74 billion. Amazon has invested heavily in infrastructure and projects to meet soaring consumer demands as online shopping continues to grow. Amazon’s growth has negatively affected traditional retailers, as brick-and-mortar stores continue to close by the hundreds. Morningstar senior retail analyst RJ Hottovy explained on CNBC’s “Closing Bell”, “Part of the revenue miss might be the ongoing shift to being a third…
The Chinese tourism industry saw a revenue increase of 15.9% to 423.3 billion yuan ($61.55 billion) during the recent Lunar New Year festival, according to the China National Tourism Administration. Driven by 344 million domestic tourist visits, the rate of growth was still slightly slower than the rise of 16.3% seen the previous year. CNTA said in a statement that trips abroad over the period increased 7% to 6.15 million outbound Chinese tourists. A total of 697,000 mainlanders also visited Hong Kong, up 3.7% from last year. The tourist boom spread to the remotest corners of the country. The Islamic…
A proposal from House Republicans that would levy a tax on imported goods has businesses lobbying furiously to shape it. The objective, better known as border adjustment, is a key component of the “Better Way” plan introduced by House Republicans before the November elections. With Donald Trump now in office, Republicans are pushing for tax reform, using the aforementioned plan as a blueprint. Republicans claim that the border adjustment would level the playing field for domestic manufactures. The policy would subject imports to the U.S. with a tax while exempting exported goods. The plan, however, faces opposition from some major…
A jury in Dallas, Texas ruled in favor of ZeniMax media, awarding the media company $500 million in damages. The jury found Palmer Luckey, and Oculus VR by extension, guilty of violating the terms a non-disclosure agreement. The jury also ruled Oculus guilty of false designation and copyright infringement. Notably absent from the charges of guilt was the claim that Oculus stole trade secrets in order to design the Rift headset. Oculus must pay $200 million for the violation of a non-disclosure agreement, $50 million for false designation, and $50 million for copyright infringement according to TechCrunch. Luckey must pay $50 million…
At least five Tesla customers who paid deposits on Models 3s told Buzzfeed on Monday that they have canceled their orders over CEO Elon Musk’s involvement in President Trump’s administration. Musk has agreed to join two White House advisory groups, an economic advisory council as well as a manufacturing council. On canceling her Model 3 order with her husband, Jodie Eason told BuzzFeed “I feel that someone that wants to colonize Mars and who worries about the machine uprising should not be scared to voice opinions counter to the Trump administration. We figured that speaking with our dollars is really…
Moon Express announced on Tuesday that it had raised another $20 million in private equity financing to fund its first lunar mission. The Silicon Valley startup is the first private company in history to be granted permission to explore past the Earth’s orbit. Following consultations with the FAA, White House, State Department, and NASA, the government made the historic ruling last year to allow a peaceful lunar exploration.Since then, Moon Express has raised a total of $45 million from investors. Investors include Founders Fund, Collaborative Fund, and Autodesk. Chairman and co-founder Naveen Jain confirmed on CNBC, “We’re going to land on…
Wal-Mart is terminating its fee-based, two-day ShippingPass program designed to compete with Amazon’s Prime service. In its place, Wal-Mart is lowering its threshold spending threshold for free two-day shipping down to $35. The previous threshold customers had to meet for free shipping was $50, and the previous delivery window was three to five days. Walmart purchased start-up Jet.com from co-founder and CEO Marc Lore last year. Since then, Lore has has made a number of changes to the world’s largest retailer. Lore, now CEO of Wal-Mart U.S. eCommerce, said on Monday. “In this day and age, two-day shipping is really just…
After months of speculation, Sheldon Adelson confirmed he was backing out of the Raiders’ stadium deal in Los Vegas, Nevada. The casino billionaire announced on Monday in a statement that he “will no longer be involved in any facet of the stadium discussion.” Aldelson had threatened to pull out of the deal in October because he did not approve of the terms offered by the Raiders. At the time, Aldeson said “They want so much. So I told my people, ‘Tell them I could live with the deal, I could live without the deal. Here’s the way it’s going to…
President Trump’s executive order to curb immigration into the U.S. spread concern on the impact the administration could have on global trade and the economy. On Monday, major world equity markets fell and the dollar fell below the yen. After the executive order came down on Friday, stocks on Wall Street experienced their worst day of the year. The order barred Syrian refugees from entering the country and suspended travel into the country for citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for 90 days. These seven countries were already labeled “countries of concern” by a 2015 law about…
The Organization of Petroleum Exporting Countries’ reduction of crude output has made money managers optimistic about West Texas Intermediate oil prices for the first time in almost a decade. Saudi Arabia announced that over 80% of the reduction of 1.8 million barrels a day had begun. This cut will reduce output to 486,000 barrels a day, keeping in line with the OPEC agreement made last October. The cut will help oil stabilize to over $50 per barrel. Tanker-tracker Petro-Logistics SA confirms that oil shipments from OPEC are taking a dive this month. To counter these cuts, American frackers have revived 11…
The White House released a list on Friday of 28 heads of industry and business leaders who will advise President Trump on manufacturing jobs. This announcement comes after an initial meeting on Monday with industry heads to discuss plans and business concerns. According to the White House, President Trump plans to hold more meetings with business leaders, organized by Dow Chemical chief executive Andrew Liveris,”to share their experiences and gain their insights.” After the meeting, Liveris said that Trump is “not going to do anything to harm competitiveness.” Mark Fields, Ford chief executive, came out of the meeting with “a…
Fourth quarter financials revealed that chipmaking giant Intel performed better than expected. The revenue report revealed an increase of 10% to $16.4 billion. Earnings per share were reported at 79 cents. The numbers outperform the Wall Street estimates of quarterly revenue and EPS, $15.75 and 75 cents, respectively. In a statement, Intel chief executive Brian Krzanich said, “The fourth quarter was a terrific finish to a record-setting and transformative year for Intel. In 2016, we took important steps to accelerate our strategy and refocus our resources while also launching exciting new products, successfully integrating Altera, and investing in growth opportunities.” Intel…
Data from the Commerce Department on Friday showed that bookings for non-military equipment increased .08% from 1.5% in November. Orders for all durable goods fell 0.4% due to a slump in the military aircraft market. While the data showed an overall lackluster 2016, the figures indicated a steady approach toward stabilization. Shipments of capital equipment, used in determining the nation’s gross domestic product, rose 1% in December. This rise is the largest of its kind since July 2015. The increased demands for capital goods signals a potential post-election buoyancy carried by increased spending. Further gains in investment that could lead to…
In closing statements on Wednesday, the legal team representing ZeniMax pushed for $2 billion in compensation and added another $2 billion in punitive damage. Facebook acquired Oculus VR in March of 2014 for $3 billion. The case levied against the virtual reality start-up is based on the claim that Oculus and its founder Palmer Luckey stole virtual reality technologies from idSoftware, a subsidiary of ZeniMax. ZeniMax alleges that Oculus’ success was due to these stolen components. Anthony Sammi, an attorney for ZeniMax, referenced evidence in his closing statement that information had been wiped from Oculus computers minutes before they were…
Alphabet, unlike many of is tech conglomerate peers, remains consistent in earnings. Fourth quarter results announced on Thursday that Google’s parent company beat analyst exceptions as revenue rose 22% to $26.06 billion. Alphabet’s net income also rose from $4.92 billion a year earlier to $5.33 billion. Alphabet is distinct from Apple, Amazon and Facebook due to the company’s search engine. Google’s search engine is a necessary tool for anyone using the internet. While Apple is profitable, its earnings come from fluctuating preferences of smartphone buyers, and the consumer can delay purchasing an iPhone. Amazon, in order to retain customers who can…
San Francisco federal judge Thelton Henderson has ordered Pacific Gas and Electric Co. to run television and newspaper advertisements announcing that the company is guilty of safety violations. This ruling comes in the wake of the natural gas pipeline explosion in 2010 that killed eight people. The jury convicted PG&E in August of five felony charges in failing to adequately inspect and repair its aging pipelines. The pipeline explosion in San Bruno that killed eight people, injured 58, and destroyed 38 homes was found to be caused by this failure. The judges also 2,000 hours of community service to “high-level…
The Long Island Power Authority approved the country’s biggest offshore wind farm on Wednesday in order to meet the growing demand in the Hamptons for energy. The wind farm is set to be built between the eastern tip of Long Island and Martha’s Vineyard. The farm is the first of several planned by developer Deepwater Wind. It will be in a 256-square-mile parcel, with room for 200 turbines. As many as 15 turbines, leased from the federal government, will generate enough energy to power 50,000 average homes in all. Thomas Falcone, chief executive of the power authority, said to a…
Oprah Winfrey is starting a joint venture with Kraft Heinz with the goal of making nutritious food accessible to everyone. The venture, called Mealtime Stories LLC, will be developed and sold as a new Kraft line, according to a statement. The line will initially focus on refrigerated dishes that are ready-to-eat. Winfrey, media mogul, and former talk-show host is known for improving business through her far-reaching influence. She gave sales a significant boost when she became the face of Weight Watchers International Inc. She also joined the board of the company and became a shareholder. Weight Watchers shares surged 170% within two days of…
Canadian-based company D-Wave Systems is now selling a 10-foot tall quantum computer valued at $15 million. The computer, called the D-Wave 2000Q, runs on 2000 qubits. This computer comes as a successor to the previous 1000Q model, which had half the number of qubits. The chip processor is roughly the size of a thumbnail. Most of the giant structure is dedicated to cryogenic refrigerators and shielding, as well as a liquid helium cooling system to keep the chips at a cool 15 millikelvins, equivalent to -459.6 degrees Fahrenheit. These systems ensure that the quantum computer will function properly, in the…
Malaysian-based AirAsia X announced on Tuesday that the Federal Aviation Administration had granted it certification to fly into the U.S. The Asian low-cost carrier is the first of its kind to receive authorization to operate scheduled passenger, according to the airline. AirAsia X Group CEO Datuk Kamarudin Meranun said in a statement, “This is a major milestone for AirAsia X. Our expansion up until now has concentrated on Asia, Australia, and the Middle East, and we are excited about our first foray into an entirely new market as we look beyond Asia Pacific.” AirAsia X, the sister airline to low-cost giant AirAsia,…
On Tuesday, Goldman Sachs issued a $1 billion counter suit against Indonesian business man Benny Tjokrosaputro. Tjokrosaputro, director of PT Hanson International Tbk, an Indonesian property developer, originally filed a suit against the company in September. The suit was filed in September in a Jakarta court and sought $1.1 billion in compensation from Goldman Sachs International for trading 425 million shares of Hanson. Tjokrosaputro also demands that Goldman Sach’s local and international assets be frozen. Citibank was named as a co-defendant in the suit, as a custodian bank for Goldman Sachs International. Tjokrosaputro seeks damages for alleged “unlawful trades in the…
Three years after the Metro-North train derailment in Brooklyn, The Metropolitan Transportation Authority announced on Monday its intent to test employees for sleep apnea. The MTA board members unanimously accept this contract, estimated at $7.5 million, to test for sleep apnea in crew members after the fatal derailment in December was blamed on an engineer’s undiagnosed medical condition. Sleep apnea is a condition in which breathing stops and starts repeatedly while an individual is asleep, up to hundreds of times per night. This is caused by the throat muscles relaxing and blocking the windpipe intermittently. Left untreated, someone affected by this disorder…
Amit Singhal announced on Friday that he planned to join Uber as senior vice president for engineering. Previously, Singhal worked at Google for 15 years, working his way up to senior vice president for search. He was Google’s 176th employee, and is credited as one of the engineers responsible for building the smarter and faster search engine, giving the company an overwhelming advantage in web search. Singhal’s role at Uber will involve building out the software and infrastructure at the foundation of the company’s ride-share services. He will report to Uber chief executive Travis Kalanick, and will spearhead the ride-hailing company’s…
General Electric continues its descent into the fourth quarter as oil patch difficulties impacted sales and lowered shares in the company down to their most severe decline in four months. On a conference call, Chief Financial Officer Jeff Bornstein said after an “extremely difficult” past year, weakness in the oil and gas unit is likely to linger into this year. After announcing fourth quarter revenues for GE that missed analyst estimates, Bornstein said the unit responsible for making drilling equipment and pipes are unlikely to improve until the second half of 2017. Growth slowed considerably in 2016 as a lagging…
On Tuesday, the Federal Trade Commission filed a lawsuit against Qualcomm for anti-trust violations. Three days later, Apple also filed a lawsuit against the mobile chip giant overcharging “excessive royalties” and withholding payment. The FTC alleged Qualcomm of using anticompetitive practices to maintain a monopoly on a critical semiconductor used in cellular devices, while Apple seeks $1 billion in rebate payments. The FTC accused Qualcomm of charging Apple an unfair amount to license its cellular patents. According to the suit, Qualcomm had used its monopoly position in the market to force “onerous and competitive supply and licensing terms.” The FTC’s complaint against Qualcomm also states…
The state of California saw 3,700 new jobs created in December, bringing the unemployment rate down .1 percent from November and .7 percent from the end of 2015 to 5.2% The national average rate was 5% in December. Robert Klienhenz, an economist at Los Angeles-based Beacon Economics says “An unemployment rate in the 5% range is what you see in California when it’s firing on all cylinders.” This rise in employment comes despite a rising minimum wage, paid sick leave, and increasing liability for labor violations. On the contentious topic of rising minimum wage, Kleinhez said “There may be some effect…
In a statement released on Thursday, U.S Justice Department said that Costco will pay $11.75 million in a deal to resolve claims against the company’s alleged violation of federal regulations. Some pharmacies within Costco stores filled improper prescriptions for controlled substances, according to the statement. This deal comes as one of several settlements at the tail end of President Obama’s administration. In a statement, U.S. Drug Enforcement Assistant Administrator Louis Millione said, “This settlement demonstrates the accountability and responsibility that go along with handling controlled prescription drugs.” As per the terms of the agreement, Costco acknowledged that between the start of 2012…
The Federal Trade Commission brought charges to Uber on behalf of the drivers who claimed to have been misled about how much money they could expect to make and how much it would cost to buy or lease a car through the company. The ride-sharing company agreed to settle these claims for $20 million. The money from the settlement will be distributed to the drivers affected by Uber’s alleged deceptive claims. The settlement also prohibits Uber from making claims about drivers’ potential income that are false, misleading, on unsubstantiated. In an email, an Uber spokesman said “We’re pleased to have reached…
Faraday Future revealed its FF91 model at the 2017 Consumer Electronics Show, the company’s first production electric car. Its 130-kilowatt-hour lithium-ion battery pack gives the car a range of 378 miles. At a power output of 1,050 horsepower, the FF91 can go from zero to 60 mph in less than 2.4 seconds. The reveal event at the Consumer Electronics Show did not go smoothly, however, as the FF91 failed to park itself during a live demonstration. The FF91 comes equipped with four different cell modems from four major telecommunications carriers, which are supposed to keep the car connected at all times,…
In separate lawsuits filed on this past Wednesday, the Obama administration accused JPMorgan Chase & Co. of several discriminatory practices. JPMorgan, regarded as the country’s biggest bank, has been the recipient of claims of bias for years, going back at least to 2009. These claims by the government accuse the lender of discriminating against minorities in home lending, as well as its female employees by paying them less than male employees in the same position. In the case filed on the discrimination of minorities, the government alleges that between 2006 and 2009, JPMorgan’s discriminatory practices cost more than 53,000 black and Hispanic…
Stock for Constellation Brands, the U.S. distributor of Mexican-made beers like Corona, Modelo, and Pacifico, has dropped since Trump’s election. One day after the election on November 8, the company’s stock dropped seven percent; On Tuesday, it was down 10 percent, according to CNN Money. Trump’s campaign has threatened to impose a “border tax” for goods coming from Mexico and to disband the North America Free Trade Agreement has raised the concerns of shareholders. He has not provided details beyond the tax, which would be applied to products manufactured in Mexico and sold in the U.S. CNN Money suggests that Trump could…
Facebook CEO Mark Zuckerberg announced his plan to invest over $3 billion in virtual reality over the next decade while testifying in the $2 billion lawsuit on the origins of Oculus. Oculus is the virtual reality company Facebook acquired in March 2014. The lawsuit concerns the intellectual property of Oculus. The current Oculus CTO, John Carmack, was formerly a ZeniMax employee. Before that, he was also co-founder of id Software, co-creator of computer games Doom and Quake, and according to an email from Facebook board member Marc Andreessen, “essentially the inventor of 3D computer games and one of the all time…
In a news release on Monday, Rolls-Royce said it has agreed to settle its bribery and corruption cases with U.S., U.K., and Brazilian authorities by paying over $800 million to the countries in question. The cases involve bribery and corruption of intermediaries in markets overseas. The company cooperated with authorities on the cases, admitting guilt in some dealings, and also claims to have passed its own concerns from 2012 onward about the matter to the U.K.’s Serious Fraud Office. A BBC report reveals that some of the cases go back decades further, and also involve local companies in countries where…
This upcoming summer, the U.S. Department of Agriculture will test a pilot program that will allow online grocery stores to accept food stamps. These stores, seven in total, include retail web giant Amazon. The program will run for two years, during which online ordering and payment will be tested in order to insure against fraudulent use. The program has the capacity to turn the $800 billion grocery industry on its head. Approximately 43 million people in America rely on the Supplemental Nutrition Assistance Program, commonly known as food stamps. This program brings in $66.6 billion in annual grocery profits. Amazon’s involvement in…
Exxon Mobil Corp has been ordered to give the Massachusetts attorney general decades word of documents that reveal its views on climate change. This order comes from Massachusetts Superior Court Judge Heidie Brieger, who refused the company’s request for exemption. Attorney general Maura Healey took to twitter to share the legal victory, “This order affirms our longstanding authority to investigate fraud. @exxonmobil must come clean about what it knew about climate change.” Healey is one of two state prosecutors investigating the world’s largest publicly traded oil company. The other is her New York counterpart, Attorney General Eric Schneiderman. Both are investigating…
The Business and Sustainable Development Commission released a report on Monday that showed a few key development goals could potentially make companies $12 trillion in business savings and revenue gains by 2030 and create 380 million jobs in the process. The group, which includes global business and finance leaders, said businesses were likely to face more pressure to become “responsible social actor[s]”. Members of the Business and Sustainable Development Commission include chief executives of multinational firms, academics, environmentalists, leaders of trade unions and philanthropists. The group was launched at last years’ World Economic Forum in Davos, to encourage businesses to pave the way…
Drugstore chain CVS has introduced a generic version of epinephrine in a syringe, rivaling that of Mylan’s EpiPen. Pharmaceutical giant Mylan faced an onslaught of unrelenting questioning in a Congressional hearing in September about its rising costs. Mylan’s EpiPen has seen a price hike of more the 500 percent since 2007. CEO Heather Bresch in repsonse to the Congression panel, said insurers were partly to blame for the soaring price of the allergy treatment. She stated that there were too many middlemen, like pharmacy benefits managers, that stand between initial production and consumption. CVS’ generic version of the EpiPen, Adrenaclick, will cost $109.99…
According to a report by Oxfam, the world’s eight richest people have as much wealth as the poorest half of the world–roughly comprised of 3.6 billion people. Last year, the charity reported that the richest 62 people were as wealthy as the poorest half of the world, but the number fell to just eight this year due to the availability of more accurate data. The world’s eight richest billionaires, according to Forbes March 2016 billionaires list, are Bill Gates, Amancio Ortega, Warren Buffet, Carlos Slim Helu, Jeff Bezos, Mark Zuckerberg, Larry Ellison, and Michael Bloomberg. Their combined net worth equals $462.2…
Studies are showing that millennials are earning 20 percent less than baby boomers at the same stage of life, despite being an overall better-educated group, with more opportunities for further education. At $10,090, the median net worth of millennial is also 56 percent less than it was for boomers. The advocacy group Young Invincible released a new analysis of Federal Reserve data that gives concrete details about this generational gap. The analysis of the Federal Reserve data compares 25 to 34 year-olds in 2013 to the same age group in 1989, adjusted for inflation. Millennials, with a median household income…
This week Amazon disclosed in government filings that it is preparing to test experimental technology in public spaces. This wireless communication technology extends to mobile devices as well as fixed base stations. The tests are to take place in rural Washington and Seattle, according to the filings. The documents, filed on Wednesday with the Federal Communications Commission, state that the tests would include “low-power, temporary fixed-base transmitters and associated mobile units indoors at and near its company facilities in Seattle, Washington.” The documents indicate that there would be three fixed transmitters and 10 mobile units at each location. Testing would…
Microsoft announced on a blog post from Friday morning that it has acquired Maluuba, a start-up based out of Toronto that focuses on using deep machine learning for natural language processing. Deep learning is the current popular approach to artificial intelligence, based on a set of algorithms that attempt to model high-level abstractions in data. In the post, Microsoft said, “We’ve recently set new milestones for speech and image recognition using deep learning techniques, and with this acquisition we are, as Wayne Gretzky would say, skating to where the puck will be next—machine reading and writing.” In the summer of 2016,…
Artem Fishman, former Yahoo Vice President of Engineering has been hired as Chief Technology Officer and Senior Vice President of the music streaming service SoundCloud. Eric Wahlforss (pictured in featured image), co-founder of SoundCloud, is now the Chief Product Officer, a newly-created role. This role has Wahlforss running point on strategy and initiatives on products to be launched later on in the year. Wahlforss, from SoundCloud’s headquarters in Berlin, will oversee engineering, design, data, and insights. In his new role, Fishman is responsible for creating and giving shape to SoundCloud’s technical vision and strategy, as well as leading its global…
United Airlines is speeding up the retirement of its jumbo Boeing 747 jets. The 747s are set to be phased out by the end of this year, whereas previously the company said it would be retired by the end of 2018. In a memo sent out to workers on Wednesday, United Airlines president Scott Kirby said “As deeply connected as we all are to this iconic aircraft, the time has come to retire out 747 fleet from schedules service.” Kirby added that “Today, there are more fuel-efficient, cost effective and reliable widebody aircraft that provide an updated inflight experience for…
Apple topped Greenpeace’s clean energy report for the third year in a row, while companies like Netflix, Amazon Web Services, and Samsung were much further down the list. Greenpeace, an environmental organization founded in 1971, compiles an energy index on companies every year. This year Apple scored a clean energy index of 83 percent, an ‘A’ based on Greenpeace’s criteria. Facebook and Google received 67 and 56 percent, respectively. Switch, a data center provider, scored 100 percent. This clean energy index indicated how much clean energy each company uses from renewable resources. It also accounts for the companies’ willingness to make…
For the first time in over a decade, Mercedes-Benz surpassed BMW in sales last year. This feat comes after Daimler, Mercedes’ parent company, switched their focus over to making stylish, high-tech automobiles instead of optimizing market share. Mercedes reported selling 2,083,888 cars in 2016, while BMW reported on Monday that it had sold 2,0003,359. This accomplishment cements the status of Daimler Chief Executive Dieter Zetsche, who had faced uneasy shareholders in the past. Zetsche struggled to bring Daimler back to life after his split from Chrysler in 2007, and shareholders worried that the company was falling behind BMW and Volkswagen. This…
The chief economic planner of China pledged on Tuesday to continue cutting back on the production of steel and coal. This decision comes after President-elect Donald Trump threatened to impose harsh tariffs accusing the country of unfair trade practices. Chairman of the National Development and Reform Commission Xu Shaoshi said that differences on trade issues were “normal” and that opening a dialogue between the two countries would go a long way in bringing the relationship into harmony. The recent pledge to cut steel and coal production in the company follows the previous year’s success in meeting target cuts in production.…
Amazon’s cloud services group recently, and discreetly, acquired AI security firm harvest.ai in their ongoing campaign of acquiring start-ups. A tipster told TechCrunch that the acquisition was a $19 million affair The cyber security firm uses machine learning and artificial intelligence to stop targeted attacks before critical customer data can be compromised. The patent-pending AI device, MACIE Analytics, learns how a user’s intellectual property is accessed in real-time in order to identify and flag suspicious behavior. The start-up presents this service as a way to stop insider attacks before they happen. The purchase has not been confirmed by either Amazon…
President Obama’s administration is making a slew of decisions before their time dwindles short, including the cut back on mortgage-insurance premiums. These premiums originated from a government program popular with first-time home owners without the proper funds for a down payment. This move may counteract the swell of rising interest rates. The Department of Housing and Urban Development gave a statement on Monday that announced the annual fees charged by the Federal Housing Administration charges are being cut by a quarter of a percentage point. These charges guarantee the mortgages the FHA backs. The yearly expense for most borrowers will…
Theranos is continuing its descent into the new year as it makes plans to lay off 40 percent of its workforce and struggles to overcome past compliance issues. The blood-testing company describes its decision to lay off 155 employees as “further re-engineering”, leaving “a core team of 220 professionals to execute on its business plans” according to a statement on the company’s website. Theranos’ downward motion was first signaled in October after 340 employees were laid off and clinical laboratories and wellness centers were shut down. The company has also faced distrust due to compliance issue allegations by regulators, ultimately ending in…
AT&T faces opposition to its merger with Time Warner from multiple sides—including the executive branch of government. The telecommunications company has also encountered suspicions concerning licenses granted by the Federal Communications Commission. In regulatory filings dated January 6, AT&T asserts that its $85 billion merger will go on according to plan. AT&T adds that it does not plan on transferring FCC licenses between companies, so there should not be a question of FCC intervention. In a filing with the Securities and Exchange Commission, AT&T stated that Time Warner reviewed all licenses held that were granted by the FCC and did…
New Year’s resolutions came early to China as a December meeting of the nation’s top leaders produced a new initiative for the country’s stability. According to a reputable source who wishes to remain anonymous, China wants to adapt to a slower growth in order to control financial risks. While China has been experiencing short-term growth by building on its debt, long-term goals for expansion require a stronger economic foundation. Therefore, following this meeting came an order to government officials to prioritize stability in their decision making this year—even at the expense of economic reform. The meeting included some risk-assessment concerning…
In a move of unexpected information sharing, Uber is making its traffic data accessible on its new website, Movement. This site sprang from the idea that data gathered by Uber in cities where the business operates could benefit the public. Movement is intended for use by urban planners in hopes of improving mobility in target areas. The traffic analysis, therefore, is packaged in a way that is easy for organizations to interpret—it is centered around zones within cities, establishing a baseline for urban planning and traffic management. The data will be made available to the general public eventually, although early…
