Thursday, July 20, 2017

American Express profits slump on higher costs but beat estimates

American Express profits slump on higher costs but beat estimates

AXP American Express
 85.10 0.19 (+0.20 %)
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July 19 (Reuters) - American Express Co's profit fell less than expected in the second quarter, as higher spending by card members made up for increased costs from offering rewards.
AmEx said card member spending was up 8 percent in the second quarter ended June 30, when adjusted for currency changes and the impact of losing a longtime partnership with warehouse club retailer Costco Wholesale Corp.
Discount revenue, which makes up the bulk of AmEx's total revenue and represents fees paid by merchants to the company, was flat at $4.82 billion.
However, net income attributable to shareholders fell to $1.31 billion, or $1.47 per share from $1.98 billion, or $2.10 per share, partly reflecting the loss of the Costco partnership as well as a $1 billion gain in the year-ago quarter on the sale of the related loan portfolio.
Analysts on average had expected a profit of $1.43 per share, according to Thomson Reuters I/B/E/S.
But the drop in net income was also the result of a 21 percent jump in total expenses.
New York-based AmEx has increased spending on rewards to prevent its generally affluent clientele from switching to JPMorgan Chase & Co and Citigroup Inc, which have rolled out lucrative rewards to woo customers as they seek to boost their credit card businesses.
For JPMorgan and Citi, post-financial crisis regulations have made the credit card business more profitable than businesses such as mortgages and capital markets trading.
Both companies reported upbeat results in their card businesses in their earnings last week.
AmEx said it spent $1.93 billion on card member rewards in the second quarter, up 9 percent from a year earlier.
Total revenue, net of interest expense, rose 1 percent to $8.3 billion in the quarter.
(Reporting by Pallavi Dewan and Nikhil Subba in Bengaluru; Editing by Sai Sachin Ravikumar)
Read the original article on Reuters. Copyright 2017. Follow Reuters on Twitter.

GOLDMAN SACHS: Bitcoin is going to test $3,000 and could get as high as $3,700

GOLDMAN SACHS: Bitcoin is going to test $3,000 and could get as high as $3,700

BitcoinAttendants pose with a bitcoin sign during the opening of Hong Kong's first bitcoin retail store. Reuters/Bobby Yip
Bitcoin has held strong support and has its sights set on a test of the $3,000 level, according to Goldman Sachs.
In a note sent out to clients on Monday, Sheba Jafari, the head of technical strategy at the bank, updated her recent chart work on the cryptocurrency.
The $1,856 to $1,790 area "has the potential to act as strong support," Jafari wrote. "All in all, the balance of signals appear to be shifting to a more positive tone."
Jafari's latest note comes two weeks after she predicted the cryptocurrency was setting up for a big drop.

At the time of her call, bitcoin was trading near $2,550 a coin. She said that bitcoin was "still in a corrective 4th wave" that "shouldn't go much further than 1,857." It fell a bit further, putting in a low somewhere between $1,758 or $1,852 (depending on which data you use).

Jafari, however, always expected the gains would resume after the correction.

And that they have.
Bitcoin has gained more than 20% from its July 17 low, and currently trades near $2,285. As to how far bitcoin can go from here, Jafari expects another run at record highs. "The minimum target for an eventual Vth wave from current levels is 2,988; an extended 5th could reach ~ $3,691."
Bitcoin is up 140% in 2017. It put in a record high of about $3,000 on June 12. 
BitcoinGoldman Sachs


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Wednesday, July 19, 2017

Google and Facebook still use the 3-word question that saved a $225 billion company in the 1970s

Google and Facebook still use the 3-word question that saved a $225 billion company in the 1970s

Procter and Gamble headquartersAnyone can ask them.AP
PG Procter&Gamble
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Min Basadur was working as a creative manager at Procter & Gamble in the mid-1970s when he got a call from a team in product development.
"We need some help," Basadur remembers the team leader telling him. "We feel like a bunch of failures."
For six months, the team had been struggling to come up with a product that could beat Irish Spring, a new and popular soap bar from Colgate. As Colgate's market share increased, Procter & Gamble knew it was only a matter of time before its market share dwindled.
One day later, the team would have a creative breakthrough, thanks largely to Basadur and his use of three words: How might we?
Here was the issue: Irish Spring featured green and white stripes; a television advertisementshowed a man showering with the soap bar in a meadow and feeling refreshed. The Procter & Gamble team couldn't seem to come up with a soap bar that beat Irish Spring in a blind test of consumers.
Basadur arranged to hold a daylong session with the team. He started with the problem it had been working on for six months: creating a better green-striped soap bar.
The key question, as the team saw it, was how to make a better green-striped bar. Then Basadur asked another question: "Why might we want to make a better green-striped bar?" The answer was that they'd lost market share.
"Why else might we want to create a green-striped bar?" Basadur asked the team. He encouraged his colleagues to think from the consumer's perspective.
One person came up with an answer: "We'd like to make people feel more refreshed."
"That was the aha moment," Basadur told Business Insider. "We had redefined the problem — and that was the secret to the process."
Now the problem was: "How might we make a more refreshing bar?"
That afternoon the team came up with about 200 possible answers to the question, and it settled on the idea of creating a bar that reminded people of the beach or the seacoast.
Soon Procter & Gamble debuted its soap bar, "Coast," featuring swirly blue stripes. It beat Irish Spring in the blind test.
You can still find Coast and Irish Spring on the market today — along with many similar products from competitors. Procter & Gamble currently has a market value of $225 billion. (You can read the full "Irish Spring story" on Basadur's website.)
This process — specifically the "how might we" question format — has since spread to companies including Ideo, Facebook, and Google, according to Harvard Business Review. Basadur, who is now a business consultant, has been teaching the process at organizations for 40 years.
As Ideo's global head of talent, Duane Bray, told Quartz: "HMW [how might we] questions are freeing amidst uncertainty because they allow clients to mentally reset, and reframe a problem as an opportunity."
Basadur told Business Insider why his process worked: "What most people did and still do to this day is they jump from what we call a fuzzy situation immediately into solutions. They miss that internal step, which was: Get some facts about it and create challenges starting with the phrase 'How might we?'"
In other words, most of us try to fix a problem as fast as possible without stopping to think about what the problem really is.
Most important, Basadur said, when you take a step back before jumping into solutions, you're "deferring judgment."
When someone says, "I've got an idea," Basadur said, we often respond with, "That's a good idea, but …" We'd do better, he said, to respond with, "I like that idea and I'd like to build on your idea and make it even better."
Defining the problem is the third step in an eight-step process that Basadur uses in his work with organizations. The process runs all the way from problem formulation to solution implementation.
Defining the problem is somewhat similar to the second step in a process called "design thinking," developed by Stanford engineers, when you ask yourself, "Which question are you going to answer?" The idea behind both is to pause and think critically before leaping into potential fixes.
Interestingly, Basadur said it wasn't his deep knowledge of the personal-care industry that enabled him to help develop Coast.
"I didn't know anything about soap bars," he said. "But I just knew how to count" — specifically, how to count the eight steps in his process. "By leading them through that methodology, out popped the answer."
Get the latest Google stock price here.

4 Apple contractors are accusing Qualcomm of antitrust violations

4 Apple contractors are accusing Qualcomm of antitrust violations

Qualcomm CEO Steve MollenkopfSteve Mollenkopf, Qualcomm CEO, speaks during his keynote address at CES in Las Vegas. Reuters/Rick Wilking
(Reuters) - iPhone chip supplier Qualcomm Inc faces a fresh set of antitrust allegations from a group of four companies that assemble the iPhone and other products on behalf of Apple Inc.
Foxconn parent Hon Hai Precision Industry Co, Wistron Corp, Compal Electronics Inc and Pegatron Corp alleged that Qualcomm violated two sections of the Sherman Act, a U.S. antitrust law.
The accusations, made in a filing late Tuesday in U.S. District Court for the Southern District of California, are counterclaims to a Qualcomm lawsuit filed in May seeking to force the contractors to pay Qualcomm license fees that Apple directed them to stop paying.
"Qualcomm has confirmed publicly that this lawsuit against our clients is intended to make a point about Apple and punish our clients for working with Apple," Theodore J. Boutrous, a lawyer for the four companies, said in a statement. "The companies are bringing their own claims and defenses against Qualcomm."
The allegations are part of broader dispute between Apple and Qualcomm, which supplies so-called modem chip technology that lets iPhones connect to cellular data networks, over the nature of Qualcomm's business model of linking the sale of chips and patent licenses, which has come under scrutiny by regulators in South Korea, the United States and several other countries.
In January, Apple sued Qualcomm alleging that the company had withheld nearly $1 billion of patent license rebates it owed Apple in retaliation for Apple's cooperation with South Korean regulators. Apple told its contract manufacturers to withhold license payments from Qualcomm while the dispute played out, which prompted Qualcomm to sue them in May.
"Despite Apple's claims against Qualcomm, Apple suppliers remain contractually obligated to pay royalties to Qualcomm under their license agreements with us, including for sales of iPhones to Apple," Qualcomm President Derek Aberle said of the dispute on the company's conference call in April.
Much of the language in the contractors' allegations mirror Apple's objections to Qualcomm's business model. A senior Apple official confirmed that the company is helping to fund the contractors' legal defense as part of an indemnification agreement among the firms. Apple has also formally joined the contractor case as a defendant.
The lost license revenue from Apple has been a hit to Qualcomm's sales. Analysts expect $5.2 billion in revenue for the June quarter, down from $6 billion a year earlier.
(Reporting by Stephen Nellis; Editing by Leslie Adler)
Read the original article on Reuters. Copyright 2017. Follow Reuters on Twitter.

Tuesday, July 18, 2017

Tesla just added the CEO of Fox News' parent company to its board

Tesla just added the CEO of Fox News' parent company to its board

James Murdoch, the CEO of 21st Century Fox and son of media tycoon Rupert Murdoch, has joined Tesla's board, the company announced in a blog post Monday.
The company also said that Linda Johnson Rice, chairman and chief executive officer of Johnson Publishing Company, will join the board. 
At 21st Century Fox, James Murdoch ran the company's environmental sustainability initiative. He and his wife, Kathryn, are the founders of a non-profit foundation called Quadrivium, which claims to "support practical, measurable solutions at the intersection of society’s challenges."
Murdoch is the son of media mogul Rupert Murdoch, who founded News Corp. 21st Century Fox split from News Corp in 2014. Many Rupert Murdoch-owned publications  — and even the man himself — have repeatedly expressed skepticism about man-made climate change. 
In a 2015 tweet, he said he was a "climate change skeptic not a denier."
Fox Networks Group is the primary operating unit of 21st Century Fox. 21st Century Fox is also a joint venture partner in The National Geographic Channels with the National Geographic Society.
Investors criticized Tesla in April for having too many board members with ties to CEO Elon Musk, and that a “critical check on possible dysfunctional group dynamics” was needed. 
Musk responded on Twitter, saying an announcement was coming soon. Three months later, the announcement was finally made: Murdoch and Johnson, who is also CEO of Ebony Media, will be joining the board.
Besides, I already said we'd add more independent members during SCTY merger. Will announce soon, but this group has nothing to do with it.
— Elon Musk (@elonmusk) April 12, 2017
The shakeup comes in a critical quarter for the electric car maker. Its new Model 3 — Tesla’s first mass-market electric car — is scheduled for delivery at the end of July. Tesla was briefly the largest US automaker in terms of market capitalization, ahead of General Motors, before being dethroned earlier this month.
Tesla shares slid 2.5% during Monday’s trading session, and continued to sink slightly after the bell. 
Get the latest Tesla stock price here.

Monday, July 17, 2017

Plutocracy III: Class War (Video)






Plutocracy III: Class War

The early struggles of the working class are placed under a microscope in Plutocracy III: Class War, the latest chapter in an exceptionally well produced series which explores the origins of America's growing economic divide.
Without a doubt, the clashes between worker rights and corporate interests are prominent in today's political and economic landscape, but they're not a modern phenomenon by any means. These imbalances, and the wealth inequalities that have resulted in their wake, have existed for generations. The filmmakers provide a searing portrait of the brave workers who fought for true democracy in the early decades of the 20th century.
The film begins with the titan of the labor movement during that period - Mary Harris "Mother" Jones. A galvanizing presence who spent her life inspiring a working class revolution, Jones rallied a coalition of miners from Ludlow, Colorado in 1914. These miners worked under heinous conditions and for little pay in a coal operation owned by John D. Rockefeller, Jr. Their determination knew no bounds; when the company cast the striking miners and their families out of their homes, they defiantly set up a colony of tents and continued their fight for fairness.
Their stand-off ended in tragedy. The National Guard was deployed and unleashed gun fire into the colony, senselessly massacring men, women and children. This appalling event sparked outrage and public protest across the United States.
The bulk of the film examines the impact of World War I on the labor movement, a conflict that saw the slaughter and disfigurement of a generation. The war provided further evidence of the class divide, and would propel labor advocacy efforts among all genders and races.
All of this culminated in the rise of the Socialist Party and the radical International Workers of the World organization, as well as the events of 1919, a year that saw 22.5% of the work force in strike mode.
Plutocracy III: Class War offers invaluable historical insights from a panel of historians and labor advocates. Their deeply human narrative is assisted by a briskly edited barrage of stock footage, archive materials, and other provocative imagery.
Directed byScott Noble

Astronomers have detected 'strange signals' coming from a star 11 light-years away

Astronomers have detected 'strange signals' coming from a star 11 light-years away

Arecibo_Observatory_Aerial_ViewThe Arecibo Radio Telescope began collecting data for SETI in 1999.Uploaded to Wikipedia by File Upload Bot (Magnus Manske)
Astronomers say they've detected "strange signals" coming from the direction of a small, dim star located about 11 light-years from Earth.
Researchers picked up the mysterious signals on May 12 using the Arecibo Observatory, a huge radio telescope built inside of a Puerto Rican sinkhole.
The radio signals appear to be coming from Ross 128, a red dwarf star that's not yet known to have any planets and is about 2,800 times dimmer than the sun. Abel Méndez, an astrobiologist at the University of Puerto Rico at Arecibo, said the star was observed for 10 minutes, during which time the signal was picked up and observed to be "almost periodic".
Méndez said it's extremely unlikely that intelligent extraterrestrial life is responsible, but noted that the possibility can't yet be ruled out.
"The SETI [Search for Extraterrestrial Intelligence] groups are aware of the signals," Méndez wrote in an email to Business Insider.

Explanations for the 'very peculiar' signals

While Arecibo is known for its role in efforts to search for signals from aliens, it's also great for looking at distant galaxies and pinging near-Earth asteroids.
Méndez thinks the signal is more likely from something humans put in space, perhaps a satellite that passed thousands of miles overhead.
"The field of view of [Arecibo] is wide enough, so there is the possibility that the signals were caused not by the star but another object in the line of sight," Méndez said, adding that "some communication satellites transmit in the frequencies we observed." 
However, in a July 12 blog post about the mystery of Ross 128, he wrote that "we have never seen satellites emit bursts like that" and called the signals "very peculiar".
Another possible explanation is a stellar flare, or outburst of energy from the star's surface. Such bursts from the sun travel at light-speed, emit powerful radio signals, and can disrupt satellites and communications on Earth, as well as endanger astronauts.
Solar flares can also be chased by a slower-moving yet more energetic coronal mass ejections: a flood of solar particles that can distort our planet's magnetic field, generate geomagnetic storms, and cripple power grids and fry electronics.

Taking another look at Ross 128

To see if the signals are still there, Méndez said Arecibo is going to stare down Ross 128 and its surroundings many more times, starting July 16.
"Success will be to find the signal again" at the star's location but not in surrounding directions, he said. "If we don't get the signal again then the mystery deepens."
China Radio TelescopeAn aerial view of FAST in southwest China. Liu Xu / Xinhua via AP
Méndez wrote in his blog post that other radio telescopes might not be sensitive enough to pick up the signals, noting one exception: China's monstrous Five-hundred-meter Aperture Spherical radio Telescope, or FAST.
But FAST isn't operational right now, since it's being calibrated, and Méndez said he doesn't know when it will be back online.
Seth Shostak, a senior astronomer at the SETI Institute, confirmed that the group is "well aware of the signals" and might use its powerful Allen Telescope Array in California "to check them out."
"The chances are high that they're terrestrial interference, in fact. That's really always been the case," Shostak told Business Insider in an email.
Right now there's really only one compelling signal from outer space that might come from aliens: "[T]he WOW signal," Shostak said. "That one is still quite odd."

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