Tuesday, February 2, 2016

Eurozone unemployment edges down for 15th month running

Eurozone unemployment edges down for 15th month running

FILE - In this Nov. 12, 2015 file photo President of the European Central, ECB, Bank Mario Draghi addresses the committee on economic and monetary affairs at the European parliament in Brussels, Belgium. Draghi will make an introductory statement before the plenary session on the ECB annual report Monday, Feb. 1, 2016. (AP Photo/Geert Vanden Wijngaert, file)syndication.ap.orgIn this Nov. 12, 2015 file photo President of the European Central, ECB, Bank Mario Draghi addresses the committee on economic and monetary affairs at the European parliament in Brussels, Belgium. Draghi will make an introductory statement before the plenary session on the ECB annual report Monday, Feb. 1, 2016.
BRUSSELS (AP) — Unemployment across the 19-country eurozone fell in December for the 15th month running to its lowest level in a little more than four years, official figures showed Tuesday.
Statistics agency Eurostat said the number of people out of work decreased by 49,000 to a total of 16.75 million. The last time unemployment was lower was October 2011. As a result, the unemployment rate fell from 10.5 percent to 10.4 percent, its lowest since September 2011.
A spokesman for Eurostat said the run of monthly declines in the number out of work is the longest the eurozone has experienced since a 21-month stretch that ended in June 2007.
Despite the welter of positive signals, the monthly decline was the smallest since June and may add to concerns that the recovery may have been losing some momentum even before the turmoil in financial markets seen this year, which according to European Central Bank President Mario Draghi has increased the "downside risks" facing the European economy.
The overall numbers continue to mask big disparities. While Germany's unemployment rate stands at 4.5 percent, according to Eurostat, Greece and Spain remain lumbered by jobless rates above 20 percent.

Leaked Twitter API data shows the number of tweets is in serious decline

Leaked Twitter API data shows the number of tweets is in serious decline

A Philippine Eagle Owl (Bubo Philippensis) is seen inside the Ninoy Aquino Parks and Wildlife Rescue Center in Quezon City, Metro Manila November 6, 2009. The center, which serves as a repository and rehabilitation facility for confiscated, donated or abandoned wildlife with the objective to release endemic and indigenous animals back to their habitat, also serves as a venue for public education and both a training and research facility for future veterinarians and biologists.REUTERS/John JavellanaTweets in decline.
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Disclaimer
The number of tweets per day created by Twitter's users has fallen by more than half since a peak in August 2014, according to a sampling of data from Twitter's API. (An API — application programming interface — is the portal through which other apps access Twitter so their software can function together.) The data was given to Business Insider by an app developer who has tracked Twitter users since 2013.
Tweets per day reached a peak in August 2014 of 661 million, our source says. That 30-day sampling period included the World Cup final. In January 2016, there were only 303 million tweets per day, on average, during the 30-day period.
TwitterBusiness Insider
"This data is not correct," a spokesperson for Twitter told Business Insider. The company, which has a policy of not commenting on third-party data, declined to elaborate.
Whether it is accurate or not, the numbers could be a problem for Twitter. This is the data that app developers see when they take samples from Twitter's datasets to gauge activity on the platform. If it is accurate, it suggests that people are using the platform less frequently. If it isnot accurate, it suggests that the activity developers see on the platform is a misleading guide as to what is actually happening, which isn't helpful for developers.
The app already suffers from a growing population of "users" who don't actually do anything on it. And growth in "monthly active users" has all but stalled, at 320 million, according to Twitter.
Data samples taken by app developers have proved to be misleading in the past. In July 2014, a sample of API data leaked to Business Insider suggested Twitter may have seen a brief decline in MAUs, but that didn't happen. MAU growth did become very soft that year, and on Twitter's own metrics the population of users who are logged-in to the platform but who don't actually do anything increased.
The disconnect between the numbers Twitter discloses to the SEC and the numbers developers see via the API occurs because developers cannot see the data Twitter uses to calculate its MAUs. Developers can only see active users and accounts.
In addition, Twitter stopped reporting its estimate of users who consisted of "third-party applications that may have automatically contacted our servers for regular updates without any discernable additional user-initiated action." Twitter has not updated that estimate since December 2014, making it more difficult to estimate what portion of Twitter's user-base isn't being operated by a human.
Our source suspects that what while Twitter has retained a core of older professional users, like media professionals and politicians, it has lost a lot of younger users who tweeted a lot at their friends. Younger users create two or three times the number of tweets that older users do, our source believes. Those young people went to rival apps like Snapchat and Instagram, our source thinks. Both those apps have overtaken Twitter in monthly active users in the last couple of years.
Another possible explanation is that Twitter has become better at rooting out spam accounts that tweet on autopilot. (But that would imply that a huge volume of activity on Twitter a year ago was merely spam.) 
Broadly, the data shows the number of active users on Twitter has been flat for two years. Twitter has publicly reported similar trends in its statistics, but the company's definition of "monthly active users" counts users whose only activity on the app is performed by another appthat happens to ping Twitter for an update, without any human intervention.
Also, the data shows that Twitter's longtime problem of users who sign up for the service and then abandon it has not gone away. The total universe of Twitter accounts is up to 1.6 billion, our source's data show. Of that total, the vast majority fall silent, don't tweet, operate in "listen only" mode, or are spam bots, our source believes.
Our source took a sample of 100,000 Twitter accounts to create each data point. The data describes the total number of accounts in existence, the number of accounts that are active, the number of new accounts created, and the number of accounts that actually tweet.
While Twitter claims it has up to 320 million monthly active users, our source's data shows that active users — people actually tweeting or creating new accounts in a 30-day period — hover around the 130 million mark. That discrepancy is likely explained in part by the fact that Twitter counts as "active" any user who is logged in during the period, whereas our source counts only users who are logged in and perform an action.
Here is the same data as above, including the total universe of existing accounts:
twitterBusiness Insider
Our source believes the majority of abandoned accounts are probably spambots. There is a still a thriving ecosystem of companies that let you buy followers. Twitter takes actions to stamp those accounts out, but it does not catch them all.
Disclosure: The author owns Twitter stock.
More: Twitt

BP is cutting 7,000 jobs after profits crumbled by 51%

BP is cutting 7,000 jobs after profits crumbled by 51%

wood axe chopping sri lanka tree cuttingPaula Bronstein/Getty ImagesCut!
The oil price rout has hit BP hard.
The energy giant on Tuesday reported its full-year and fourth quarter results, saying profits cratered 51% last year from $12.1 billion (£8.4 billion) to $5.9 billion (£4.1 billion).
When you drill down into the results it's even worse — fourth quarter profit was just $196 million (£136.1 million) compared with $2.2 billion (£1.5 billion) for the fourth quarter of 2014. That's a huge 91% drop, far worse than the 51% registered across the year. Things are trending downwards.
The cause is clear — tanking oil prices. BP says in its statement:
Despite strong operational performance and growing cost reductions, the lower underlying result was predominantly driven by the impact of steeply lower oil and gas prices on BP's Upstream segment, which reported a pre-tax loss for the quarter.
The Brent crude oil marker price averaged $44 a barrel in 4Q 2015 compared with $77 a year earlier, and the average Henry Hub US gas marker price was $2.27 per million British thermal units compared with $4.04 in 4Q 2014.
BP took a $2.6 billion (£1.8 billion) writedown on its upstream business — the part that actually drills oil out of the ground — in the fourth quarter alone.
As a result of collapsing profits and prices, BP says it is cutting up to 4,000 jobs in its upstream business in 2016 and up to 3,000 in its downstream business — which processes and delivers energy — by the end of 2017.
BP's costs were cut by $3.4 billion (£2.3 billion) in 2016 and it is aiming for an addition $7 billion (£4.8 billion) in savings by 2017.
As you might expect after such a downbeat update, shares are tanking. BP has opened down over 5% on Tuesday morning in London.BP

Google just passed Apple to become the most valuable company in the world

Google just passed Apple to become the most valuable company in the world

steve jobs eric schmidtAP/Paul SakumaApple founder and then-CEO Steve Jobs, left, and Google's then-CEO (now Chairman) Eric Schmidt, right, smile as they introduce the iPhone in 2007.
Alphabet, Google's parent company, has overtaken Apple to become the most valuable company in the world.
Alphabet closed Monday at $518 billion, but in after-hours trading on Monday, Alphabet spiked over 5% at one point following a strong earnings report, making Google worth roughly $544 billion. At that point, Apple's market capitalization stood at $534 billion.
As a whole, Alphabet posted total revenue of $21.32 billion in the fourth quarter.
Alphabet beat on both the top and the bottom line, posting earnings per share of $8.67, which beat analyst expectations of $8.09. 
Alphabet's primary revenue-generating engine is Google, of course. During Monday's earnings call, Google CEO Sundar Pichai noted that seven Google consumer products have more than 1 billion monthly active users, including Gmail, Search, Android, Maps, Chrome, Youtube, and Google Play.
But as quickly as Google can make money, parent company Alphabet can spend it. "Other Bets" revenue, which includes Google's long-shot projects like self-driving cars and internet balloons, posted an operating loss of $3.56 billion with only $448 million in revenue. 
Wall Street liked Alphabet's earnings, spiking the stock over 8% in after-hours trading before settling down closer to 5%. 
Of course, we'll see if Alphabet will officially claim the lead tomorrow morning, when the market opens.

Monday, February 1, 2016

UBS profit rises 11% on tax gain; bank raises dividend

UBS profit rises 11% on tax gain; bank raises dividend

[LONDON] UBS Group AG said net income rose 11 per cent in the fourth quarter boosted by a tax gain that offset a decline in wealth-management and investment-banking profit.
Net income in the fourth quarter was 949 million Swiss francs (S$1.33 billion), UBS said in a statement Tuesday. That beat the 911 million-franc average estimate of seven analysts surveyed by Bloomberg. UBS proposed a dividend for 2015 of 85 centimes per share, up from 75 centimes for 2014.
Chief Executive Officer Sergio Ermotti has reshaped the bank to focus on wealth management, shrinking the investment bank, a model that's being tested as market swings and a slumping oil price reduce client trading. Low interest rates and increasing regulatory demands for capital are hampering the bank's ability to boost profit, raising investor concern that dividends may not increase as quickly as expected.
The fourth quarter was characterised by very low levels of client activity and pronounced risk aversion, UBS said in the statement.
The bank has pledged to pay out at least half its earnings to shareholders as long as its common equity Tier 1 ratio, a measure of financial strength, remains above 13 per cent. The ratio stood at 14.5 per cent at the end of December. The 2015 dividend includes a special payout of 25 centimes, as did the 2014 dividend.
The bank's pretax profit in wealth management declined 47 per cent to 344 million francs from a year ago, while the investment bank saw a decline of 63 per cent to 80 million francs.
Wealth management had net money outflows of 3.4 billion francs in the quarter.
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