Sunday, June 18, 2017

PlayStation and Xbox owners use their consoles for things other than gaming half the time

PlayStation and Xbox owners use their consoles for things other than gaming half the time

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The big news at E3, the video game industry's annual trade show that's going on this week in Los Angeles, is Microsoft's introduction of a new Xbox game console. 
The new gadget is called the Xbox One X, and it's designed to deliver high-fidelity, PC-quality games on a device that's easier to use than a computer. That kind of power won't come cheap. The new console will cost $499, which is well above every other current console, including Sony’s competing, but technically less capable, PlayStation 4 Pro.
Even if price weren't an issue, it's an open question whether gamers will really be interested in a more powerful machine. Instead of playing games, US owners of both the Xbox One and PlayStation 4 spend roughly half their console-using time doing things that don't require a super-charged game machine, such as streaming video and watching movies on disc, according to a recent report from Nielsen that's charted here by Statista.
While the Xbox One X should be able to display 4K and HDR videos with aplomb, so too can its more affordable sibling, the $249 Xbox One S, For now, the Xbox One X seems to be aimed squarely at Microsoft’s most ardent Xbox fans.
COTD_6.12Mike Nudelman/Business Insider/Statista

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Saturday, June 17, 2017

A psychologist with 20 years of experience says there are 5 simple ways to improve your self-esteem

A psychologist with 20 years of experience says there are 5 simple ways to improve your self-esteem

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swimBe kinder to yourself.Unsplash / Haley Phelps
Self-esteem is a wonderful but delicate thing. When our self-esteem is high, we feel more resilient, we're less vulnerable to anxiety and rejection, and less cortisol — the stress hormone — is released into our bloodstream.
The positives are obvious, but improving self-esteem can be challenging, especially if we've experienced setbacks in the past. In a blog post on TED, the psychologist Guy Winch, who has 20 years of experience working with patients, says the problem is that our self-esteem is rather unstable anyway, as it can fluctuate daily, even hourly.
Another complication is how our careers shape our perception of our own worth. For example, a chef would more likely be offended if you didn't like the meal they cooked for you than someone who doesn't cook for a living. Winch says this is because cooking is a significant aspect of their identity.
He outlined five ways to help improve self-esteem and how to better deal with the blows we experience.

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1. Use positive affirmations in the right way.

Positive affirmations are a method of practising "You are what you think." The idea is that you fill your mind with positive thoughts until you believe them.
It's a popular way of going about building your self-esteem because it's simple, but Winch says there's one major problem: Positive affirmations tend to make people with low self-worth feel even worse, because anything that's said as an affirmation — such as "I am beautiful" or "I will be successful" — can often be too contrary to their existing beliefs about themselves.
Winch suggests changing "I'm going to be successful" to something more manageable, like "I will persevere until I succeed."

2. Identify what you're good at.

Winch says self-esteem grows when we demonstrate real ability and achievements in the areas of our lives that matter to us. Maybe you're good at running — sign up for some local races and train for them. Keen on cooking? Throw more dinner parties.
The key, he says, is to figure out your core skills and talents and find opportunities — and even careers — that emphasise them.

3. Learn how to accept compliments.

When we feel bad about ourselves, it's hard for anyone else to drag us out of that rut. Winch says we tend to be more resistant to compliments at these times, even though this is when we need them the most.
He says that instead of shrugging off compliments as lies, you should set a goal of tolerating compliments when you receive them. Even if you feel uncomfortable — and you probably will — it'll be worth it in the long run.
The best way to stop yourself from batting compliments away, he says, is to prepare set responses to certain things and force yourself to use them until it's automatic. These responses could be simple things like "Thank you" or "How kind of you to say."
The impulse to laugh off compliments will eventually fade, which will be a sign that it's working and that you're starting to believe the nice things people say about you.

4. Don't criticise yourself.

Don't kick yourself when you're already down.
Winch says this is what we're likely to do. When our self-esteem is low, we can damage it even further by being self-critical.
Winch says we should combat this with self-compassion. When you feel your inner self starting to criticise, ask yourself whether you'd say these things to a close friend.
As a rule, we tend to be much more compassionate to friends than we are to ourselves, so think twice next time you start telling yourself all the things you do wrong. Winch says doing this will help avoid damaging your self-esteem, allowing you time to focus on building yourself up instead.

5. Remind yourself of your real worth.

If your confidence sustains a blow, Winch says this is the best way to revive it.
If you get rejected by someone you've been dating, make a list of your qualities that make you a great partner, such as loyalty or emotional availability. If you didn't get the promotion you were after at work, jot down everything that makes you a valuable employee, such as being reliable or dedicated.
Write a brief paragraph or two about why a specific quality is important and why other people would appreciate it. Winch says to do this exercise every day for a week or whenever you feel you need a pick-me-up.
Building up self-esteem isn't easy, and it requires a bit of work, but Winch says the return is invaluable if you do it correctly — you'll find yourself developing healthier emotional habits, and you'll bounce back easier when you suffer knocks in the future.

Wall Street is handing Amazon $13.7 billion to buy Whole Foods

Wall Street is handing Amazon $13.7 billion to buy Whole Foods

Goldman Sachs CEO Lloyd BlankfeinGoldman Sachs CEO Lloyd Blankfein.REUTERS/Gary Cameron
AMZN Amazon.Com
 987.71 23.54 (+2.40 %)
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BAC Bank of America
 0.00 0.00 (+0.00 %)
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GS Goldman Sachs Gr
 221.81 -1.42 (-0.60 %)
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Amazon is buying Whole Foods.
The online giant is buying the high-end grocer for $42 a share, valuing the company at $13.7 billion.
Shares of the grocer were trading at $33.06 a share before the deal was announced, so the deal represents a 27% premium on its closing price yesterday.
In a filing on Amazon's website, the company revealed that it expects to pay for the merger with debt financing from Goldman Sachs and Bank of America Merrill Lynch. 
Here's the relevant extract:
"The Company expects to finance the Merger with debt financing, which could include senior unsecured notes issued in capital markets transactions, term loans, bridge loans, or any combination thereof, together with cash on hand. In connection with entering into the Merger Agreement, the Company has entered into a commitment letter (the “Commitment Letter”), dated as of June 15, 2017, with Goldman Sachs Bank USA, Goldman Sachs Lending Partners LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Bank of America, N.A. (collectively, the “Commitment Parties”), pursuant to which, subject to the terms and conditions set forth therein, the Commitment Parties have committed to provide a 364-day senior unsecured bridge term loan facility in an aggregate principal amount of up to $13.7 billion (the “Bridge Facility”), to fund the consideration for the Merger."
Goldman Sachs will have the "lead left" role, giving it the lead role on the financing. The bank is lending $6.85 billion, with the bank itself committing $3.5 billion, and GS Lending Partners putting in $3.35 billion. Bank of America is signed up to lend $6.85 billion. 
The filing also said that Goldman Sachs will be the only firm to receive any "brokerage fees, commissions or finder's fees" for the merger.
Get the latest Bank of America stock price here.

Friday, June 16, 2017

MORGAN STANLEY: Bitcoin isn't a currency

MORGAN STANLEY: Bitcoin isn't a currency

Bitcoin may have appreciated 300% in the last 12 months, but Morgan Stanley still isn't convinced the cryptocurrency will be a viable currency in the long run. 
In new research published this week, analysts at the bank say that bitcoin (and its counterparts like ethereum) are still more like investment vehicles than fiat currency that you could spend on goods and services. In addition, it said there are few reasons to use bitcoin instead of a debit or credit card, as it represents a "marginally more inconvenient way to pay."
Here's Morgan Stanley:
Most regulators and investors view cryptocurrencies more as assets than actual currencies. Their values are too volatile and too hard to actually use for payment for most to consider them currencies. Our conversations with some merchants indicate that, while cryptocurrencies might actually be attractive for them to operate their businesses, they find that the cryptocurrencies are far too volatile to be used.
Bitcoin price 12 months june 14The price of bitcoin has exploded in the past year. Markets Insider
The huge rise in the price of bitcoin is perplexing to the bank, which says other factors should have brought bitcoin's value down. These include the SEC's rejection of a bitcoin ETF proposed by the Winklevoss twins, declining trading volumes, and a Chinese crackdown on bitcoin miners, without which "transaction time for Bitcoin could increase substantially," says Morgan Stanley. 
"It is not clear why cryptocurrencies are appreciating so rapidly (apart from the appreciation itself drawing in more speculation against a potentially inefficient ability to sell)," the bank said in a note. 
Still, Morgan Stanley has some guesses as to why bitcoin has seen such a catastrophic rise:
  1. ICO's, or Initial Coin Offerings: Instead of traditional public offerings or funding rounds, a handful of companies have begun offering investors digital tokens in exchange for cash. In on high-profile case, a tech startup called Aragon raised $12.5 million in less than 15 minutes in its ICO. 
  2. China: There are strict limits on currency outflows in the country, and Morgan Stanley assumes many people are using cryptocurrencies as a way to bypass the limits. 
  3. Korea and Japan: Bitcoin was just legalized by the Japanese government, so it makes sense that it would be gaining popularity in the country. "In Korea, however, there is not a clear explanation for the surge," the bank writes. 

Get the latest Bitcoin price here.

More people now subscribe to Netflix than cable TV in the US

More people now subscribe to Netflix than cable TV in the US

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Netflix is becoming as much a staple of the American home as cable TV — even more so.
In the first quarter of this year, the number of US Netflix subscribers overtook the number of American cable TV subscribers for the first time, according to a recent study by Leichtman Research Group charted for us by Statista. While Netflix has rapidly gained new subscribers, cable has been slowly losing them. 
To be sure, Netflix has a ways to go to outpace all traditional multi-channel pay TV services. If you added subscribers to satellite services like DirecTV and phone-based systems like Verizon's FiOS to cable subscribers, Netflix would trail far behind. 
Even setting that aside, Netflix's gain isn't necessarily cable's loss. Netflix and cable offer access to different things, so plenty of people subscribe to both. And it’s worth remembering that many of the same firms that offer cable TV also provide the internet connections consumers use to tune in Netflix.
But Netflix's milestone is yet another sign of the growing appeal of streaming video.
COTD_6.15 (1)Mike Nudelman/Business Insider/Statista

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Thursday, June 15, 2017

Here's the Fed's plan to unwind its massive $4.5 trillion balance sheet

Here's the Fed's plan to unwind its massive $4.5 trillion balance sheet

wells fargo bank vaultThe vault at a Wells Fargo bank. AP
During the financial crisis, the Federal Reserve built up a store of roughly $4.5 trillion in Treasurys and other assets, like mortgage-backed securities, on its balance sheet.
Since then, when these assets have come due the Fed has turned around and reinvested the principal back into new assets, maintaining the size of its balance sheet.
Now, nearly a decade after the start of the financial crisis, the Fed has announced its plan for shrinking the size of its balance sheet.
The basic idea is that the Fed will stop reinvesting the principal of securities when they mature.
Put another way, when a 10-year Treasury on the Fed's books comes due, the money it gets back from that investment will not be used to go out and buy another Treasury.
The slowing of reinvestment will be phased in over time. To start, the Fed will invest money back into the market only if it gets back more than $6 billion in principal returned a month. From there, the "cap" will increase by $6 billion every three months over the course of a year until it hits $30 billion a month.
The Fed said it would ultimately have a balance sheet "appreciably below that seen in recent years but larger than before the financial crisis" in part because the Fed expects banks to maintain higher demand for reserves supplied by the central bank. But that is a pretty broad end point given that the Fed held roughly $800 billion in assets before the financial crisis and $4.5 trillion now.
Here's the full plan via the Fed:
All participants agreed to augment the Committee's Policy Normalization Principles and Plans by providing the following additional details regarding the approach the FOMC intends to use to reduce the Federal Reserve's holdings of Treasury and agency securities once normalization of the level of the federal funds rate is well under way.
  • The Committee intends to gradually reduce the Federal Reserve's securities holdings by decreasing its reinvestment of the principal payments it receives from securities held in the System Open Market Account. Specifically, such payments will be reinvested only to the extent that they exceed gradually rising caps.
    • For payments of principal that the Federal Reserve receives from maturing Treasury securities, the Committee anticipates that the cap will be $6 billion per month initially and will increase in steps of $6 billion at three-month intervals over 12 months until it reaches $30 billion per month.
    • For payments of principal that the Federal Reserve receives from its holdings of agency debt and mortgage-backed securities, the Committee anticipates that the cap will be $4 billion per month initially and will increase in steps of $4 billion at three-month intervals over 12 months until it reaches $20 billion per month.
    • The Committee also anticipates that the caps will remain in place once they reach their respective maximums so that the Federal Reserve's securities holdings will continue to decline in a gradual and predictable manner until the Committee judges that the Federal Reserve is holding no more securities than necessary to implement monetary policy efficiently and effectively.
  • Gradually reducing the Federal Reserve's securities holdings will result in a declining supply of reserve balances. The Committee currently anticipates reducing the quantity of reserve balances, over time, to a level appreciably below that seen in recent years but larger than before the financial crisis; the level will reflect the banking system's demand for reserve balances and the Committee's decisions about how to implement monetary policy most efficiently and effectively in the future. The Committee expects to learn more about the underlying demand for reserves during the process of balance sheet normalization.
  • The Committee affirms that changing the target range for the federal funds rate is its primary means of adjusting the stance of monetary policy. However, the Committee would be prepared to resume reinvestment of principal payments received on securities held by the Federal Reserve if a material deterioration in the economic outlook were to warrant a sizable reduction in the Committee's target for the federal funds rate. Moreover, the Committee would be prepared to use its full range of tools, including altering the size and composition of its balance sheet, if future economic conditions were to warrant a more accommodative monetary policy than can be achieved solely by reducing the federal funds rate.

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