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Industry watch: Taiwan, a game changer

According to the Industrial Technology Research Institute (ITRI), the global semiconductor manufacturing revenue including wafer foundry and IC package and testing industries, grew 13.6% from US$501 billion in 2019 to US$570 billion in 2020, with Taiwan's corresponding revenues growing from US$86 billion to US$109 billion. With contribution of 20% for the global semiconductor industry, Taiwan is the world's second-largest semiconductor powerhouse next to the US, surpassing South Korea and Japan and leaving China far behind......»»

Category: topSource: digitimesNov 25th, 2021

Biden Admin Plans "Imminent" Booster Expansion; Orders 10M Courses Of "Pfizermectin"

Biden Admin Plans 'Imminent' Booster Expansion; Orders 10M Courses Of 'Pfizermectin' As governments worldwide continue to ratchet up authoritarian punishments for the unvaccinated and undervaccinated... Austrian police hunt for The Unvaccinated, who have been confined to their homes and face fines of $1660 for being in public (except when working). And the human rights industry, the EU, US and much of the int’l left are silent, if not quietly approving. pic.twitter.com/Wc26Eh09EC — Max Blumenthal (@MaxBlumenthal) November 16, 2021  ...health officials are once again moving the goalposts when it comes to the definition of 'fully vaxxed.' To that end, the Biden administration is expected to 'begin the process of expanding the booster authorization to all adults' as early as this week, according to Axios. The decision comes amid data which makes clear that vaccine efficacy wanes over time, requiring a booster three-shot course in order to protect against infection and infecting others reduce the < 1% risk of death in most adults under the age of 50, while marginally reducing transmission until it wears off again in 90 days.  More via Axios: Despite disagreement among experts about who needs a booster, there's broad consensus that older people and at least some with underlying health conditions should get an additional dose around six months after their first series. But only 36% of Americans 65 and older have received a booster shot, according to the CDC. "As every month goes by, the immunity wanes more and more. So as time goes by, you’re going to see more vaccinated people" becoming more vulnerable to the virus, NIAID director Anthony Fauci told Axios. The vast majority of breakthrough cases — particularly among younger people — aren't severe. But "as is always the case, the elderly are more vulnerable, because they're more likely to have waning of protection over time," Fauci said. Pfizermectin Meanwhile, the Biden administration has also ordered 10 million courses of Pfizer's new Covid-19 antiviral pill - which immediately triggered the highly conflicted fact checker industrial complex at the mere mention that it's anything like Ivermectin - despite doing the exact same thing (inhibiting protease). On Tuesday, Pfizer announced its plan to ask the US FDA to authorize its emergency use. U.S. officials see this antiviral pill, and another by Merck and Ridgeback Biotherapeutics, as potential game-changers to help restore a broader sense of normalcy and are eager to add them to a small arsenal of treatments for Americans who contract the coronavirus. With breakthrough cases rising and 30 percent of American adults not fully vaccinated, health officials believe the pills will help tame the pandemic because of their ability to thwart the virus’s most pernicious effects. Pfizer announced earlier this month that its experimental pill, which will be sold under the brand name Paxlovid, reduced the risk of hospitalization and death by 89 percent in high-risk people when taken within three days of the onset of symptoms. The company said it planned shortly to file an application for emergency use authorization with federal regulators. -Washington Post Being the altruistic types, Pfizer has also allowed generic drug companies to start cranking out their new antiviral in what couldn't possibly be an effort to unseat Ivermectin as the world's go-to early treatment option. If one is interested in an in-depth analysis of the similarities between Pfizer's new "game-changer" and Ivermectin, watch below: We can't wait for more fact checks that benefit big pharma! Tyler Durden Tue, 11/16/2021 - 15:00.....»»

Category: dealsSource: nytNov 16th, 2021

Transcript: Hubert Joly

       The transcript from this week’s, MiB: Hubert Joly, Best Buy CEO, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here.   ~~~   BARRY RITHOLTZ,… Read More The post Transcript: Hubert Joly appeared first on The Big Picture.        The transcript from this week’s, MiB: Hubert Joly, Best Buy CEO, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here.   ~~~   BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have an extra special guest. Hubert Joly is the man who helped turn around Best Buy when they were floundering about a decade ago. The stock has since returned 10X from when he joined as Chairman and Chief Executive Officer. He is the author of a fascinating new book, “The Heart of Business: Leadership Principles for the Next Era of Capitalism.” He’s really a fascinating guy, has an amazing background, both as a consultant for McKinsey and being on a number of different boards and running a number of different companies. Everybody who’s looked at his work always put him amongst the best CEOs, top 100 this, top 30 that, really just a tremendous, tremendous track record. And I had a fascinating time speaking with him. I think if you’re at all interested in anything involving leadership or the next era of capitalism or why the old-school Neutron Jack approach to just firing everybody and cutting costs away to restore profitability no longer works, you’re going to find this to be a fascinating conversation. So, with no further ado, my interview with Hubert Joly. VOICEOVER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. RITHOLTZ: This week, my special guest is Hubert Joly. He is the former Chairman and Chief Executive Officer of Best Buy. He is currently the Senior Lecturer on Business at Harvard Business School. He is on the boards of directors at Johnson & Johnson and Ralph Lauren and has been named one of the top 100 CEOs by Harvard Business Review, one of the top 30 CEOs by Barron’s and one of the top 10 CEOs to work for in the U.S. by Glassdoor. Hubert Joly, welcome to Bloomberg. HUBERT JOLY, Senior Lecturer, Harvard Business School: Well, thank you, Barry, very much looking forward to our conversation. RITHOLTZ: So, let’s start with a little bit of your background, you’ve been the CEO of three major companies. Tell us about how that came about. Take us to the beginning or early days of your career. JOLY: Yes, Barry. I started my career with McKinsey & Company in France and then also in the U.S. Essentially, I didn’t know what I wanted to do. So, that, I thought, it’d be a great training ground and I ending up staying a dozen years at the firm, done a great deal and had wonderful opportunities to lead great companies. At first, I left McKinsey to lead a client that was EDS, Electronic Data Systems in France and I ended up doing a number of turnaround and transformations of companies in industry sectors that were challenged by technology. So, in videogames, in travel, and then, of course, ended up with Best Buy. And I’ve ended up working a variety of industry sectors and those specializations there and every move was a move that was based on — it was – there was somebody with whom I had developed relationship that played a critical role. And so, for example, when I left Vivendi Universal to become the CEO of Carlson Wagonlit Travel, the CEO of (inaudible), which was one of the two shareholders, had been a client of mine and where we have stayed friends. So, Barry, one of the key lessons is that try to minimize the number of people you annoy or irritate along the way and try to focus on doing a great job when you are and then I hope that God provides in the end, which is, I think, the lesson for me of my career. RITHOLTZ: So, I want to spend more time talking about your career. But I have to ask, how did you find yourself moving from France to the United States, what led to that and what was that transition like? Because every time I’m in Paris, I always end up saying to myself, God, I could live here. JOLY: Yes. Thank you for that, Barry. So, the first time I moved to the U.S. in 1985, I was with McKinsey & Company. I’d gone to school in France and there had been discussion of should I do an MBA in the U.S. and after a while, McKinsey said no, you really don’t need to do that. But if you want to spend time in the U.S., we’ll send you to one of our offices. So, I ended up in the San Francisco office, quite the years where the minors were at the top of their game, right? So, that — it’s quite fascinating. And then the last time I moved to the U.S. was in ’08, 2008, when I became the CEO of Carlson Companies. So, I moved there from Paris, France to Minneapolis, Minnesota. And I love France. I think it’s a great country. I love the U.S. What I love about the U.S. is that since Jefferson, we’ve been optimistic. It’s been the dream of a better life and it’s this optimism. Let me tell you, in France, you talk about a problem that has never been solved. People will say, well, who are you to talk about it. Nobody has been able to solve it, right. But in the U.S., if a problem has never been solved, immediately, your friends is like, this is interesting, let’s see whether we can solve it. I love this optimism in this great country and I’m now a dual citizen, Barry. RITHOLTZ: Very — really, really interesting. So, let’s talk a little bit about how one becomes a good CEO. Is it effectively on-the-job training or is it a function of your experience and ability that makes you a great leader? JOLY: Yes. There’s the myth that you’re born a leader. I think that every leader was born, of course, but none of us were born leaders and I think it’s a learning journey. And for me, it’s been — yes, I’m learning by doing, learning on the job, learning from great mentors. One thing I learned the most about — with McKinsey was watching my client’s lead and I learned so much from a number of them. Learning from colleagues, at Best Buy, I learned so much from the frontliners and some of our great executives and then our coach. So, let’s slow down here. Can we agree, Barry, that exactly 100% of the top 100 tennis players in the world have a coach. RITHOLTZ: Sure. JOLY: I think the same is true for all of the NFL teams, all of the Champions League teams. What about us executives, right? And so, it’s interesting that now, for CEOs and senior executives have coaches much more popular. But 10 or 15 years ago, not so much. And I’ve benefited enormously, my first coach was the inimitable Marshall Goldsmith. I’ve learned a ton from him. He helped me deal with feedback and focus on getting better and asking for advice. And without Marshall, I would not be – it is infomercial before and after picture, it’s most improved. RITHOLTZ: Marshall Goldsmith was where? Was that at McKinsey or? JOLY: It was — the first time I worked with Marshall was in 2009. I had just became the CEO of Carlson Companies and my head of HR, Elizabeth Bastoni, told me, would you like to work with a coach and my first reaction was, am I doing anything wrong, is everything wrong with this? He said, no, no. I know Marshall, he helps in a great deal get better. His clients are – were, at that time, Alan Mullally of Ford and Jim Kim of the World Bank. I said, that’s cool, I want to be a member of that club. And Marshall was so helpful because when I was getting feedback, you do a 360 and you hear the goods and then you hear the other parts and my reaction initially was, what’s wrong with them, right? What are they talking about? And Marshall helped me — and the way he helped was — so, I did the 360. He gave me first all of the good things that people have said and says, spend the time to swallow this, digest this. And then the next day, he gave me the other stuff and he said, here’s the scoop, you don’t need to do anything with it, right? There’s no god that says that you need to get better at any of these things but you can — but you get to decide what you want to work on and get better at, right? And think about, so, here’s a question that we could ask, right, think about things that you’d like to get better at, right, and if you cannot think about anything, try humility, right, as a potential area. And then what Marshall made me do is talk to my team and said, thank you very much for all of the feedback you’ve given me and then based on what you said, I’m going to start to work on three things, number one, number two, number three, and I’m going to follow up with each of you to ask you for advice on how I can get better at these three things and then a few months from now, I’ll follow up to see how I’m doing. Now, believe me, Barry, first time I did this, this was excruciating pain having to admit to my team that I was not perfect. They knew it. They knew I was not perfect but having to say it out loud and then I wanted to get better at something. But this getting better at something makes it very positive. And then — so, later on, when I joined Best Buy, I repeated that signaling to every one of the executives that it was OK to want to get better at something. And so, later on, everybody at Best Buy had a coach and we were all helping out each other on getting better at our job, which is what I think you need to do. So, coaching — executive coaching plays a key role in my life. RITHOLTZ: Very interesting. And I recall seeing Marshall Goldsmith’s name on a book, “What Got You Here Won’t Get You There” and a quick Google search shows me that like you, he also is a professor. He teaches at Dartmouth’s Tuck School of Business and has quite an impressive CV. But I want to stick with the concept of coaching and mentors, what did you learn at McKinsey who helped you when you were there sort of develop into the CEO that you are today? JOLY: Yes. So, there was — for me, there were two phases, Barry, at McKinsey that we serve, before the partnership and then the partnership. So, in my first say six years as an associate and then a manager, I learned a lot about problem-solving, communications, serving functional matters and so forth. So, I could say I learned a bunch of technical skills. But when I became a partner, the opportunity I got was sit down next to the CEO of the clients, watch them do their thing and listen and learn from them and that makes me — I got a great deal, right, because they were paying us and I was learning from them, right? Couldn’t get a better deal than that. And so, I will always remember, there was a client in, Jean-Marie Descarpentries was the CEO of a computer company Honeywell Bull and this is the guy who told me that the purpose of the company is not to make money, right? It’s an outcome, right? In business, you have three imperatives. You have the people imperative, which are the right teams. We have the business imperatives, which are the customers or clients and then great products and services. And then there’s a financial imperative and, of course, you have to understand that excellence on the financial imperative is the result of excellence on the business imperative, which itself is the result of excellence on the people imperative. So, it’s people, business, finance and finance is an outcome. And by the way, it’s not the ultimate goal because if you think about a company as a human organization, a bunch of people working together, they’re probably in there to create something in the world, right, and we can dig into this but that was — and believe me that was 30 years before the BRT statement of 2019 that we said we need (ph) in August the second anniversary. And so then, it was — the practical implications around this is that when you do your monthly review with your team, start with people and organization. Don’t start with financial results. If you should start with financial result, you’re going to spend your entire time on financials and you want to understand what’s driving these results whereas if you start with people and organization, you have a chance to spend time on that, then business, customers, products and then the CFO will make sure that you’ll spend enough time on the financial results. So, for me, that was a game changer and I applied this throughout my career and you could say whether it was in videogames or in travel or hospitality or in Best Buy, this focus on people first and treating profit as an outcome was a big driver performance. And this has not smoked anything illegal when I say this, Barry. As you know, the share price of Best Buy went from beyond low, it was $11. Recently, it’s been between 110 and 120. So, time spent in nine years, that’s not bad. Maybe you could have done better, Barry, but it’s OK, I think. RITHOLTZ: No. I don’t think I could have done better than 10X and PES no longer illegal in New York. So, you could smoke whatever you like. We’re going to — by the way, those three steps that you just mentioned are right from the book and we’re going to talk a little more about the book in a few minutes. But before we get to that, I have one last question to ask you which has to do with the fact that Best Buy, you mentioned it’s up 10X, it’s a publicly-traded company. Before you were at Best Buy, you are also at a giant company but it was privately held. Tell us a little bit about what that transition was like having to answer to shareholders and Wall Street. How did you manage that? Very different experience from everybody I’ve spoken with over the years. JOLY: Yes. Barry, so, I’ve worked in a public company, Best Buy. I’ve worked in a family-owned company, this was Carlson Companies. I’ve worked in a partially private equity-owned company, Carlson Wagonlit Travel, one equity partner of JPMorgan with 45 different shareholders and frankly, I think it’s pretty much all the same. You have shareholders whether they are large entities like Fidelity or Wellington or it’s a private equity player or it’s a family, they have expectations and needs and, by the way, all of them are human beings, right, by the way and that’s focused on the high-intensity trading that all the longs and all the shorts, they are human beings, and I’ve had – even though I say profit is an outcome and is not the ultimate goal, shareholders, even in stakeholder capitalism, are very important stakeholders. They’re taking care of our retirement. So, we love them for that. And so, when I was a CEO of Best Buy, I so enjoyed spending time with our shareholders sharing with them what we’re doing, answering their questions, they’re smart. It was always taking things away and the key was pay attention, listen and then pay attention to the say/do ratio. Best Buy had lost its credibility because they were saying a lot but not doing much, right? So, with my wonderful CFO sharing the column with me, we’re going to say less and do more and that’s how we’re going to build our credibility and we would be very transparent, share our situation, the opportunities we saw, what we’re going to do, and then we update them in our progress. And so, I really enjoy the competition. But in many ways, Barry, I think public, private equity or a family is largely the same. It’s people, we have to respect them and take care of their needs. RITHOLTZ: My extra special guest this week is Hubert Joly. He is the former Chairman and Chief Executive at Best Buy, a company that he helped turn around over the course of his tenure there. Let’s talk a little bit about that. If you would have asked me a decade ago what the future look like for Best Buy, I would have said they were toast that Amazon was going to eat their lunch and they were heading to the garbage pile. Tell us what the key was to turning the company around so successfully. JOLY: You’re, right. Everybody thought we’re going to die. There was zero buy recommendation on the start in 2012 and what I found as I was examining the opportunity to become the CEO because my first reaction when I was approached was this is crazy, right? This is the same reaction as you described. But what I found is that there was nothing wrong with the markets or the business outside. All of the problems were self-inflicted. In fact, the customers needed Best Buy because we needed a place where to see and touch and feel the products and ask questions. And the vendors ultimately needed Best Buy. They needed a place where to showcase their products, the fruit of their billions of dollars of R&D investments. The problems were self-inflicted. Prices were not competitive. The online shopping experience was terrible. Speed of shipping was bad. The customer experiences in the stores have deteriorated. The cost structure was bloated and, and, and. That’s great news because if a problem is self-inflicted, you can fix it. RITHOLTZ: Right. JOLY: And so the first phase was all about fixing what was broken and the advice I had been getting, Barry, was cut, cut, cut. We’re going to have to close stores, cut headcounts. We did the opposite. All of the stores were profitable. So, frankly, there was no point of closing stores in a significant fashion. RITHOLTZ: Right. JOLY: It was very — the first phase was a very people centric approach, listening to the frontliners. My first week on the job, I spent it in the store in St. Cloud, Minnesota. I think in France, we would say St. Cloud but over there it’s St. Cloud so there you go. And really listening to the frontliners, they had all of the answers about what needed to be done. And so, my job was pretty easy, it was do what they have to — what they said we needed to do like fix the website, make sure the prices were competitive and so forth. The second on the people centric approach, build the right team at the top and then instead of focusing on headcount reduction, focus on growing the top line by meeting the customer needs and fixing what was broken in the customer experience and treating headcount reduction really as a last resort. And then focus on mobilizing the team on what we need to do for the customers. That sounds soft but that was our opportunity and that’s what we need to do in the first two or three or four years. And then once we have saved the company, it was about how do we — where do we go from here, how — what kind of company do we want to build for the future. And that’s why we focused on designing our purpose as a company. We said we’re actually not a consumer electronics retailer. We are a company in the business of enriching life through technology by addressing key human needs, which we’ll talk more about this. But this was transported because it’s expanded our addressable market and have to mobilize everybody. And as a company, we have to work on making this come to life in all of our activities and really creating an environment where – I think the summary at that time was we unleashed human magic. We had a hundred thousand people plus, I think spring in their step, connecting would drive them in life with their job and doing magical things for customers. And frankly, Barry, I learned so much along the way and, again, all of this sound soft but go back to — we went from $11 to 110 or 120. That was the key. RITHOLTZ: To say the very least. So, let’s talk a little bit about what you guys had done in the physical stores. The big threat to Best Buy was people showrooming, meaning showing up to look it up products and then buying it for a little cheaper at Amazon. How did you — and this is the line from the book, quote, “How did you kill showrooming and turned it into showcasing?” unquote. JOLY: Yes. So, everybody was talking about showrooming at that time. The frequenct was not that high actually but of course, it was incredibly frustrating for the blue shirt associates in our store to spend time with you, Barry, we love you but we spent 30 minutes with you answering all of your questions about the TV and then you buy it online. So, after 30 days at the company, we actually decided that we were going to take price off the table by lining up places with Amazon and giving the blue shirts the authority on the spot to match Amazon prices. And so, I took price off the table … RITHOLTZ: Right. JOLY: … and the customers, once they were in our stores, they were ours to lose. RITHOLTZ: Right. When you want to drive home with the TV in the back of the car instead of waiting a couple of days from it to come from Amazon, immediate gratification has to be a huge benefit you guys have as the physical store. JOLY: Exactly. And then, yes, of course, the (inaudible) but you’re still going to die because your cost structure is too high, it’s higher than Amazon or Walmart. So, we did take $2 billion of cost out. RITHOLTZ: Wow. JOLY: But the way we won in the end was we just had aha moment of, as I said, showcasing. If you are a Samsung or HP or Amazon and Google products, you need a place where to showcase your products, right, because you spend billions of dollars on R&D and if it’s just I’d say vignette on a website or box on a shelf, you’re not going to excite the customers. RITHOLTZ: Right. JOLY: You need a place where to showcase your products. And so, we did deals. The first one was with Samsung where we had a meeting in December of 2012, Barry. J.K. Shin, the then CEO of Samsung Electronics came to visit us in Minneapolis in December of 2012 and over dinner, we did a deal where in a matter of months, you would have 1,000 Samsung stores within our stores where you could showcase these products. It was just across the aisle from — we already had an Apple store within the store and it was good for the customers because they could see the products, they could compare with Apple. It was good for Samsung, right, because the alternative for them first was to build 1,000 stores in the U.S., it takes time, it’s difficult, and. of course, we have this great location and great traffic. And good for us because it was part of our OPM strategy, other people’s money strategy, right, because there were some good economics for us. And so, that allowed us to offset the cost advantage in Walmart or Amazon we have and then over time, we did deal with all of the world’s foremost almost tech companies, including Amazon for crying out loud, and that was the game changer. And we look — if you look at our stores today, they are shiny because — we have all of these shiny objects and you can see and experience all of these products. So, that was really a game changer. RITHOLTZ: So, let’s talk a little bit about both Samsung and Amazon. First, I’m always surprised that people don’t realize what a giant product company Samsung is. It’s not just phones but it’s phones, its TVs, it’s washers, dryers. I mean, Samsung basically anything in your house is a product that Samsung makes and not just entry-level washer, dryers or refrigerators. I think was it last year or two years ago, they bought Dacor, which is like a subzero, high-end manufacturer of kitchen appliances. So, when you set up the store within a store with Samsung, tell us about what that did and how did that impact Samsung’s sales at Best Buys? JOLY: Sure. Yes. I mean, you’re right to highlight this great company. The first deal we did with them was focused on phones and tablets and cameras. So, in a matter of months, they had these stores within our stores and it really put them on the map. It is I think — if you go back to the ’90s, Samsung was not the same company. They were really low end and the chairman at that time, so, the father of the current — of J.Y. Lee now, came to the U.S. and said, at some point, I want Best Buy to carry us and it would be the ultimate goal. And now, they’re one of our top five vendors, probably better than top five. And so, it really gives them the physical presence and to prove that it’s worth for them was then we did the same in the TV department and then in the appliance department. So, it’s been a series of wins for them. And once we have announced the deal with Samsung, other — we had similar conversation with Microsoft, Steve Ballmer, we had a conversation at CES and then two months later, we did the Microsoft stores within Best Buy and then it went on and on. And Tim Cook at Apple told me that he didn’t really like what we were doing, he understood it but he didn’t really like it and Apple has been a very important vendor to Best Buy. So, what we decided to do with them is do more. And so, it was stronger partnership. So, Best Buy is not simply carrying products and partners with the world’s foremost tech companies and with some of these companies and partners on product development, new product introduction and because there’s so much innovation that drives the business, it’s a critical role we play. We also partner in service, Best Buy sells AppleCare, an authorized Apple service provider. So, these partnerships really changed the game. And in the U.S., I think it’s not arrogant to say that Best Buy is the only player which these large companies can do these meaningful deals. So, it really changed the trajectory. RITHOLTZ: I have to ask you about the Geek Squad. Whose idea was that and how significant is it to the company? JOLY: Sure. Robert Stephens was a student at the University of Minnesota, was the — is the founder of Geek Squad in 1994. Very creative guy. The name itself is good — is cool, the logo and so forth, and then Best Buy acquired the company in 2002 when it was quite — still quite small and now, of course, it’s become really big, it’s 20,000 employees. And it’s the key elements of Best Buy’s differentiation because Best Buy is not just in the business of selling you something. We’re — our target customer — people who are excited about technology need technology but also need help with it. And so, with the Geek Squad and the blue shirts, we’re able to advise you when you’re looking at what to do but also help you implement in your home, helps you figure out if something is not working across, right? Of course, let’s take an example. If Netflix is not working tonight at your house, Barry, is it because of Netflix, is it piping to the home, is it the router, is it the streaming device, is it the TV, honey, what is it, right? And we’re honey, right, and we’re going to be able to help you across all of these vendors. And so, that’s a big differentiator for the company. So, really genius. RITHOLTZ: My extra special guest this week is Hubert Joly. His new book is called, “The Heart of Business.” Let’s talk a little bit about writing a book which is quite an endeavor. What motivated you to sit down and say, sure, I’ll write a book? JOLY: Well, this is not a traditional field book. So, this is not a memoir. This is not about the story of the Best Buy turnaround per se. It was reflection, Barry, and it’s really been something I’ve been thinking about for the last 30 years that so much of what I’ve learned at business school, what McKinsey or the early years of my career is wrong, dated or incomplete. And when sit back today or in the last couple of years, even though I’m the eternal (ph) optimist, I have to say it out loud, the world as we know it is not working, right? We’re in this multifaceted crisis, you have, of course, the health crisis and economic crisis, suicidal issues, racial issues, environmental problems, geopolitical tension, it simply is not working. And what’s the definition of madness, right? It’s doing the same thing and hoping for different outcome. And for me, on my FBI’s most wanted list, is two people. One is Milton Friedman, shareholder primacy, and two is Bob McNamara, the former Secretary of Defense and executive at Ford who’s the — almost the inventor top-down scientific management. These approaches don’t work and I think they got us in trouble and there’s a growing number of us, right, and certainly, I’m not the only one, who believe that there’s a better formula that business can be a force for good that — it’s the idea that business should pursue a noble purpose and take care of all of the stakeholders that you put people at the center. You embrace all stakeholders in some kind of declaration of future dependents. There’s no need to choose between employees and customers and shareholders. It’s by taking care of customers and employees and the community that generate great returns for shareholders. We treat profit as an outcome and this formula, people call it stakeholder capitalism or purposeful leadership, I think everybody now talks about it and embrace it, most people. There’s still a few who don’t agree. But the challenge then is how do you do this, how do you make this happen and, Barry, I felt that with my experience and the credibility of the Best Buy turnaround, I could add my voice and my energy to call this necessary foundation of business and capitalism around purpose and humanity and provide like a guide for any leader at any level frankly who is keen to move in that direction but like the rest of us, we would help. And so, that was the genesis of the book and the subtitle of the book is leadership principles, right, for the next era of capitalism and the book is full of very concrete examples and stories and illustrations. There’s questions at the end of each chapter that people can use to reflect and act at their company. So, that’s the book. RITHOLTZ: Speaking of the book, it got a terrific review from all — of all people, Amazon’s Jeff Bezos. How did that come about, how did Bezos give you a review and what’s the relationship like between Best Buy and Amazon these days? JOLY: Sure. Best Buys has always sold Amazon products because we think about Amazon as the retailer, of course, as a cloud company but Amazon is also a product company, right? They have the Kindle and, of course, all of their Echo products. And Best Buy have always sold Amazon’s products in the stores. Other retailers say it otherwise but we felt these were great products and we’re here to serve customers. I got to know Jeff firstly through the business council. Both of us were members there on the executive committee and once, I was invited to discuss our turnaround and how we had approached that transformation and Jeff was in the first row and being very kind. But then we did this significant partnership where I think it was in 2018. Amazon gave Best Buy exclusive rights to Fire TV platform, which is their smart TV platform, to be embedded into smart TVs. So, any smart TV with the Fire TV embedded in it, Best Buy is going to control that. It’s only going to be sold at Best Buy or by Best Buy and Amazon. And when we did the announcement for this deal, we did it in a store in Beverly, Washington, and Jeff came and we had some media there and Jeff said, TV is a considerate purchase. You got to see the TV. Best Buy is the best place in the world we you can do this. That’s why we’re doing the partnership and we built this stress-based relationship. And, of course, the media was — this was a jaw-dropping moment and Jeff is a very generous man. It’s interesting because it raises another question which is how do you think about competition. As you lead a company, do you obsess about competition or do you obsess about your customers and what you can become. And that’s one of the things that Jeff and and I share which is you obsess about your customers and becoming the best version of yourself you can be. Of course, at Best Buy, we look at Amazon. We wanted to — actually, in the sense, we neutralize them, right, because same prices, same great shopping experience and we ship as fast as they do. So, let’s call it a draw on the online business and then we have unique asset. And so, you’re not obsessed about your competition. In fact, in some cases, you partner with them and I think the world — other than the COVID pandemic, there’s another pandemic in the world which is the fear or the obsession about zero-sum games. The only way that Amazon could win is if Best Buy loses or vice versa. The only way this podcast can be successful, Barry, is if you win and I lose. That’s crazy, right? You get to collaborate and create great outcomes and I think in this world as leaders, we have to think about how we can create when win, win, win outcomes for our customers, our employees, our vendors, the community and ultimately, their shareholders. RITHOLTZ: And to put some flesh on those bones, some numbers on it, in 2007, before the financial crisis, Best Buy had done about $35 billion in revenue. In 2020, they were somewhere in the neighborhood of 47 billion and this year, I think the company is looking for an excess of 50 billion. So, clearly, that’s been heading in the right direction. Let’s talk a little bit about your experience on other boards. You’re in the board of directors of Johnson & Johnson and you’re on the board of directors at Ralph Lauren. What have you learned from those firms that were applicable to Best Buy and what do you bring to the table for those companies? JOLY: Yes. So, I joined — the first board I joined was Ralph Lauren in 2009 and I was the CEO of Carlson Companies, which was Carlson Wagonlit Travel, TGI Fridays and then a bunch of hotels, Regent and Radisson. The reason why I was interested in joining another board was to try to become a better CEO in the relationship with my board and sitting on somebody else’s board, you can see the needs of the board and then you can see how the CEO and their team are dealing with you. So, that was a great experience because when you become CEO and you deal with the board, you have zero experience, right, dealing with the board. So, that’s one of the things you learn on the job. So, that was a great way for me to learn. And these two companies, J&J and Ralph Lauren, they’re two amazing companies. J&J, I joined recently. I joined about 18 months ago. And so, watching Alex Gorsky and his team navigate the pandemic, their Credo-based approach. I mean, they’re the inventor of stakeholder capitalism before (inaudible), right, with their Credo that they created in 1943 that’s focused on all of the stakeholders. They’re one of the most innovative companies. So, they show the value of doing meaningful innovation for the benefit of, in their case, their patients. This is a wonderful entrepreneur. The company was founded in ’67 and it’s a great company, one of the most iconic brands on the planet. So, how do drive this and how do you balance left brain and right brain and, of course, enjoying cooperating with Patrice Louvet, the CEO, who is a terrific guy. And so, learning — I’m like a sponge, I love learning (ph) from others. What I bring, I would frame it along the lines of what I was looking for my board to do when I was CEO and I was not looking for the board to give me all of the answers and do my job, right? But I use the board — I wanted — I build a board that would give me complementary skills. So, I wanted to have the best people on the board that would have skills that would be additive to our management team and use the board as a sounding board to — I would get 80 percent of the value of the board meeting in preparation to the board meeting. And then getting reaction at the sounding board. When you are in the weed, sometimes, you’re missing something and then being able to access unique expertise from my board. So, what I try to bring on these boards is I try to be a resource for the management team, a sounding board, and helping them with their most important issues. I really enjoyed that. I’m in the state now where I started a new chapter as you highlighted, I’m no longer a CEO but it’s a matter of giving back and helping the next generation of leaders be the — become the best version of themselves they can be. So, I do that through boards and through executive education at Harvard Business School, also coach and mentor of a number of CEOs and executives. So, it’s — I just love doing that. RITHOLTZ: So, let’s talk a little bit about what you’re doing now. Tell us about the class you’re teaching at Harvard. JOLY: So, on Monday, August 30th, that is the first day of school for the incoming MBA class. So, I’m one of the professors in the first year. I teach marketing, which is about — it’s focused really on how do you grow a company focusing on the customers. So, that’s one of the things I do. I’m also part of the faculty that’s — as a program for new CEOs. So, twice per year with a small bunch of new CEOs, I did this when I became CEO, that come here for three days and we try to help them out. I’m also part of the faculty that’s doing a program called Leading Global Businesses and last but not the least, I’m really passionate about this, we’re designing and we’re going to pilot program for companies and then also in the MBA program called Putting Purpose to Work and Unleashing Human Magic. So, many companies on this purpose journey today. And so, there’s going to be a series of workshops for the top 30 people, custom programs, one company at a time, and we’re going to try to support them in their journey. We’re doing our first pilot this fall and to look forward to learning from that experience. And I think we’re just in the early innings of that new era of capitalism. So, so much to learn. I’m super excited to be part of that journey with a number of companies. RITHOLTZ: Quite interesting. I have to ask you the obvious question, is your book a book you assigned to your students? What do you have them read? JOLY: So, HBS is a school where there’s really not, for the most part, mandatory reading of any books. So, I know that last year, before the book was established, my wonderful Section E from the MBA program, they all got a copy of the manuscript and they had great conversations, too. Sometimes, the book gets distributed to the participants of the executive education programs. But in the MBA, there’s little mandatory reading. It’s all about, as you know, the case study methodology, which is a wonderful way to learn because it’s hard to learn just from reading. Reading, I mean, I encourage people to read the books for sure but it’s by practicing that you really learned, right? So, that’s the HBS way. RITHOLTZ: To say the very least. And one of the things that Bezos specifically mentioned was that he thought your turnarounds at Best Buy was going on eventually become a Harvard Business School case study. What are your thoughts on that? JOLY: Well, we’re actually working on that with Professor Gupta and it’s going to be taught for the first time. This is going to be fun, right? It’s going to be the last case of the marketing class in December. And so, of course, in my section, it’s going to be ironic. I’m going to be Professor Joly and I’m going to be one of the protagonists. There’s been other cases on Best Buy but this one is going to be much on the turnaround and transformation. So, that’s going to be fun. I’ve also taught it — we’ve also taught it in some of the executive education programs. So, Jeff – I know Jeff is right, there’s a Best Buy case now at Harvard Business School. RITHOLTZ: Really, really quite interesting. So, you mentioned purposeful leadership. Let’s delve into that a little bit. How does one become a purposeful leader who’s focused on creating the sort of environment where others can flourish and perform at their best? JOLY: Yes. This is, for me, such an important information and I grew up believing that as the leader, what was important was to be smart, right, where I went to school and to — some of the best schools and in the early years of my career, this is the left brain would highlight being the smartest person in the room. I’ve learned over the years that this is not what drives great outcome over time. I had an entire reflection and we slowed down. One of the things that is important to do is reflect on why do we work. Is work markedly a mixed reputation, right? We work — is work a punishment because some dude send in paradise, right, or is work something we do so that we can do something else that’s more fun or is work part of our fulfillment as a human being, part of our quest for meaning, right, to talk about Victor Frankl. And one of the things that I really invite myself to do and every leader to do is reflect on this. What’s going to be the meaning of my life professionally? How do I want to be remembered? One of the things we ask the CEOs to do in the CEO program in Harvard is write your retirement speech or with my wife when I — when we coach or mentor CEOs, we ask them to write their eulogy. What would you like other people to say on that day when you’re not here to listen? And I think this is so meaningful because people talk about the purpose of the corporation. I think it starts with our individual purpose, right, because motivation is intrinsic, right? And so, how can you lead others if you cannot lead your life and yourself? For me, that’s the beginning. And very practical, one of the turning points in our journey at Best buy, Barry, was every quarter, we would get together as an executive team for an offsite and one day, I asked every one of the executive team members to come to the offsite with a picture of themselves when they were little, maybe two or three years old. We got some really cute pictures, Barry, I can tell you that and over dinner, we spent the evening sharing with each other our life story and what drives us in life, what’s the meaning of our life. And what came out of that discussion, several things, one is we realized that all of us were human beings, not just a CFO or CMO or CHO, and that, with a couple of exceptions, all of us had the same kind of goals in life, which is it is the golden rule, do something good to other people. And that was transformational because we said, well, we’re the executive team of Best Buy. At that time, Best Buy — we had saved Best Buy and it was — where do we go from here? Why don’t we use Best Buy as a platform to do something good in the world and become a company that customers are going to love, employees are going to love, community is going to love and, of course, shareholders are going to continue to love. And so, there’s a similar idea in my mind which is connecting what drives us as individuals with the purpose of the company and the thing for companies that are embarked on the purpose journey, they write down their purpose but if they just try to cascade it down and communicate it to everybody and say, why don’t you — why aren’t you excited about this new purpose, right, it doesn’t work. We really have to start with what drives every individual and the company and then you realize that, yes, what is your role. So, in the book, I talked about the five Bs of purposeful leadership. The first B is be clear about your — what we are talking about, be clear about your own purpose, be clear about the purpose of people around you and how it connects with what you’re doing at the company. The second one is be clear about your role as a leader. It’s not to be the smartest person in the room but to create the environment in which others can be the best version of themselves. And, of course, if you’re leading a significant company and Best buy has more than 100,000 people, the only thing that happens is the thing that you decide that you come up with, you know it’s going to go far, right? So, it’s all about creating this environment which is significant mind shift. It’s also about — yes, Barry? RITHOLTZ: I was going to say, I’m struck by your comments and this comes through the book about showing vulnerability, inspiring people, embracing your humanity. I think back to the former CEO of General Electric, Jack Welch, whose nickname was Neutron Jack for how frequently he would lay off people and close divisions and fire other executives. When you were putting your philosophy to work at Best Buy, were you aware that this is a radical break from what had come before you? JOLY: Yes. And to quote — so, to go back to France in 1789, at the moment of the Storming of Bastille, there is Louis XVI asked La Rochefoucauld, is this a revolt, and La Rochefoucauld’s response says, no, sire, this is a revolution. And I think that’s what it is and it’s really shifting things. People are not the problem. They’re the source and they’re also the ultimate goal. And I think that most people agree with this, Barry, the challenge is not agreeing with this now, I think it’s really doing it and it’s — I can speak from experience. If you were to look at my face, you would see all of these scars on my face. Learning from experience and trying to get better at this is a lifelong journey of learning to be vulnerable. I was raised — being taught that I — you couldn’t say I don’t know and now, in the world we live, did you have a manual for the COVID pandemic, did you have a manual for back-to-the-office, Barry? No. So, it’s clear that we don’t know. So, we have to be able to say my name is Hubert and I need help and we’re going to work together to figure it out. So, there’s a C change in leadership, meaning from a place of purpose and with humanity and a great deal of humility. RITHOLTZ: So, I want to talk about the pandemic in a moment. I want to stick with this revolution that you mentioned. There’s a quote from the book that I really like, quote, “The Milton Friedman version of capitalism got us here. But now, this model is failing.” Explain to us how it got us here, why it’s failing now and what comes next. JOLY: I used this to highlight the idea which mainly has been Milton Friedman’s, only I get was the context when he spoke. But the obsession with profits being the only thing that matters is proven to be poisonous and excessive focus on profit is poisonous and there’s several reasons for this. One is when we look at the reported profit of the company — by the way, if anybody believes that U.S. GAAP really tries to equate economic performance, study your accounting again, it’s not even trying, it’s a set of principles. There’s many things that GAAP profit does not capture, including your negative impact on the environment or how well your sales force is trained. The other thing is that it focuses on an outcome. So, in medicine, the (inaudible) analogous is my MD was focused on my temperature, right, and I don’t want a doctor that’s purely focused on my temperature because maybe he’s going to put the thermometer in the fridge or in the oven, right, depending. I want somebody who’s going to be interested in what’s driving my health and try to help me get healthy. And so, we got confused by this obsession and that was (inaudible) and, of course, there’s extreme cases. Enron is one of them but — where we lost track of why we’re on this planet and responsibility with doing the right thing. So, this new model, the reinvention of business probably going back to some of our roots, right, with the idea that business is here to purse enabled (ph) purpose. And this is not about socialism, this is about doing something good in the world that could be responding to needs of customers in a way that’s responsible. It’s about putting people at the center embracing all of the stakeholders in a harmonious fashion, refusing zero-sum games and treating profit as an outcome. I think that’s the formula that’s employed by some of the best companies on the planet. And as leaders, we need to go back to that and to learn new things because we’re so influenced by some of the techniques we learned last century, including this top-down management approach and using it extensively. So, that’s something you’re going to learn over time. There’s research by the MIT that shows that financial incentive deteriorates performance, which is the opposite of what we’ve learned, right? But if you feed somebody with carrots and sticks, beware because you’re going to get a donkey, right? RITHOLTZ: Right. JOLY: And in a world where you need creativity and people to be their best, motivation is going to be intrinsic. So, that’s what you need to be able to touch and get to the environment where people want to be their best and make a meaningful contribution in their work. So, I think this is a very exciting phase. This is an urgent phase because I’m concerned probably like you and many others that we have a few ticking timebombs and I have three wonderful granddaughters. I want to do my best to try to, quote-unquote, “make the planet” be a better world, right, than the current trajectory. RITHOLTZ: And this is very consistent, I have a fuller understanding of your philosophy that profit should be an outcome and not just the goal in and of itself. You’ve really put some meat on those bones. JOLY: Yes. Thank you, Barry, and there’s practical implications of that again and starting your monthly business meetings or even your board meetings with people and organization and then customers and business and then basically (ph) with with financial results. You should take care of the first two, the profits will follow. So, it’s a significant practical and philosophical transformation. Talking about quotes here, we quoted Milton Friedman, but I love this quote from the Lebanese prophet, Kahlil Gibran, who said that work is love made visible. RITHOLTZ: That’s a wonderful quote. And let’s talk a little bit about visibility of some of the changes you did. By the time you stepped down from the board of directors in June of last year, Best Buy’s board of 13 directors had, for the first time ever, a majority of women and three African-American directors. Tell us how you brought about this increase of diversity. What about diversity throughout the rest of the company and what was the impact of so much inclusion and a shift away from the older homogenous types of boards? JOLY: I think, Barry, it’s clear for every one of us today that having diversity is going to get to a better business outcome and I do believe that has there been Lehman brothers and sisters instead of Lehman brothers, we would have had a different outcome. But if you also take it a very practical fashion, in one of our stores in Chicago that’s in the Polish neighborhood, if the blue shirts don’t speak Polish, they’re not going to sell much. RITHOLTZ: Right. JOLY: Or when we had Brazilian tourists in Orlando, the blue shirts didn’t speak Portuguese, they were not going to sell much. So, having diversity of every dimension, talent, skills, profiles, gender, race, the country’s color is changing very rapidly, it’s becoming black and brown, we have to represent — it’s very simple, we have to represent the diversity of the customers we serve. If we don’t, bad things happen. And so, there’s a business imperative, there’s also a moral imperative when we see the state of the country. So, from a gender standpoint, as I said, I have three granddaughters, I want them to have the best opportunities, and why would it make sense to only recruit from a quarter of the population, right? RITHOLTZ: Right. JOLY: The board’s — I’ll say the board’s composition was a great place to focus now. It’s not the only one. When we rebuilt the board study in 2013, we want to have the best skills. We were determined to be diverse. So, we had an early focus on gender diversity and when I started to focus more on ethnic diversity, probably starting in 2016, 2017, I met — I had a great meeting with Mellody Hobson of Ariel Investments and … RITHOLTZ: Sure. JOLY: … she’s now the Chair of Starbucks, everyone knows Mellody, she’s amazing, one of the things she told me is that people cannot be who they cannot see. And so, starting at the top and having a board that would signal the direction was important. So, what’s really — and changing the composition of the board is not that hard with only 10 or 12 or 13 people, how hard can it be? So, we told the headhunter don’t bother giving us resumes of non-black directors, right, and if you believe that you are unable to find great black candidates, well, say that’s OK, we won’t have a problem with that. We’ll just work with another firm. It’s not a problem. And so, we recruited three amazing directors and we got them on the board that they’ve concluded (ph) in this direction and I think it makes a huge difference. And, of course, Best Buy is headquartered in Minneapolis and following the killing — the murder of George Floyd, it’s pretty simple, if you — if the city is on fire, right, if the community is on fire, you just can’t open stores, right? You can’t run a business. RITHOLTZ: Right. JOLY: So, in this country, we have this big racial issue that has been going on for centuries. I think generation has the opportunity to end systemic racism and that’s something we, I think, business can play a big role in this. So, that was determined and that’s what we did. RITHOLTZ: Let’s jump to our favorite questions that we ask all our guest starting with tell us what you’re streaming these days, give us your favorite Netflix or Amazon Prime, what’s keeping you entertained during the pandemic? JOLY: I have so much electronic equipment in our place that I’m doing a lot of streaming. I love — I always listen to music. I’m a movie buff. I have a collection of probably 800 movies on my (inaudible) setup. Our favorite I would say recently has been “Good Doctor.” I think that’s Season 5, it’s starting at the end of September. We’re very excited about this. And then from a podcast standpoint, I like listening to HBR’s Idea Cast. That’s a weekly – a great weekly podcast. Whitney Johnson has a great leadership podcast called “Disrupt Yourself.” And then I have to mention, there’s a young teenager, well, teenager would be young anyway, right, but let’s call him a teenager, Logan Lin has got a FinanZe podcast that focused on the Z generation. My God, the guy is so cool. So, everybody joins and downloads FinanZe spelled F-I-N-A-N-Z-E and that’s Logan Lin. RITHOLTZ: Quite interesting. We hinted at some of your mentors but let’s jump into that in more depth. Tell us some of the people who helped to shape your career. JOLY: There’s so many, Barry. Jean-Marie Descarpentries, a client of mine, had this big influence on me teaching me so much about how to put people first and treating profits as an outcome. There were two great friends, yes, who happened to be monks in a religious congregation in the early ’90s. That was a turning point. They asked me to write a couple of articles with them on the theology and philosophy of work which is where I got a lot of my roots in terms of work as part of our search for meaning as individuals, as human beings. It changed my perspective on work. Another turning point, too, in my early 40s, you could say throughout the book, it was at the top of my first mountain, right, had been a partner at McKinsey & Company. I was on the executive team of Vivendi Universal, by many measures., I’ve been successful, right, except I think the top of that first mountain was very dry which was not fulfilling. There was no real meaning. So, I call it my midlife crisis, right? So, instead of going on to an island, I did — I stepped back and I did the spiritual exercises of Ignatius of Loyola. So, you could say the founder of the Jesuits, of course. You could say he was one of my mentors that was really helpful to help me discern my calling in life, which today or since then has been to try to make a positive difference on people around me and use the platform I have to make a positive difference in the world which is what I’m doing now teaching and mentoring and so forth. And then we mentioned Marshall Goldsmith, my first coach and a good friend. Later on, I also worked with Eric Pliner at YSC. When the board — so, Marshall was doing my annual — having that board with my annual evaluation and the board realized that Marshall and I were such good friends and said, we need somebody more objective now. And we got Eric Pliner, who is now the CEO of YSC, worked with me but also his firm works with every one of our executives and helps us with executive team’s effectiveness and that was quite transformative. You should have spent more time earlier on not just on building the right team but enhancing our team effectiveness and I learned a lot working with Eric in that journey. RITHOLTZ: Let’s talk a little bit about everybody’s favorite question, tell us about some of your favorite books and what are you reading right now. JOLY: I read three books this summer. The first one is by Rakesh Khurana who’s now the President of Harvard College and it’s called “From Higher Aims to Hired Hands” which is the history — exactly for me, the history of business education in the U.S. over the last 120 years and how the business school curriculum were saved and how — and why he believes and I do believe as well that we need to evolve it not just learning techniques but also with — it’s not just about learning something or learning to do something, it’s also learning to be, which is I think an entire journey. I also read “Caste” by Isabel Wilkerson and a book by my colleague, Tsedal Neeley, “Remote Work Revolution” which is, of course, a very timely book. Best book ever read, I have to mention Marcel Proust being French, “In Search of Lost Time.” It’s only 3,000 pages. So, if you have a minute or two, I encourage you to get to it. Victor Frankl’s “Man’s Search for Meaning” is another favorite. And you mentioned the Marshall Goldsmith’s “What Got You Here Won’t Get You There.” And finally, I have to mention my wife’s book called “Aligned: Becoming the Leader You’re Meant To Be” and her name is Hortense Le Gentil. It’s one of the best leadership books that I’ve ever read and, of course, a little bias maybe. RITHOLTZ: Maybe you’re a little bit bias. So, you work with grad students and college students, what sort of advice would you give to a recent college graduate who is interested in a career either as an executive or leadership or even in retail? JOLY: I think the advice is the same as we give the new CEOs is write your retirement speech or even better, write your eulogy. And I know my good friend John Donahoe, who’s now the CEO of Nike, did this when he graduated and he’s always kept it. And I understand he goes back to it every year and it’s hard. (Inaudible) between the ages of 26 and 34, early in your adult life, you don’t necessarily know everything but try to write it and see what journey you want to be on and how you want to be remembered. That would be one plot. RITHOLTZ: Quite interesting. And our final question, what do you know about the world’s of leadership and executive management today that you wish you knew a couple of decades ago when you were first getting started? JOLY: Well, there’s so much over the years. I think it has to do with profits being an outcome not the goal. It’s about importance of looking at drivers of performance. It’s about my role as a leader is not to be the smartest person in the room but to create the right environment. Not about being perfect. Nobody’s perfect. And I think the quest for — maybe I’ll finish with this, the quest for perfection can be very dangerous, can be evil, right, because if you’re trying to be perfect, guess what, you’re not going to be successful. You’re going to be incredibly demanding and harsh with people around you because you expect them to be perfect. And so, you have to be laxed and be kind with yourself and others around you and be able to open up and share what you are struggling with, understand what they’re struggling with and help each other out. That’s the — I think to me, that’s — it’s such an important consideration. The quest of perfection can be very dangerous. Be kind to yourself. During the pandemic, we learned so much, right? We used to fly around Barry, long time ago on planes, right, and we were told by the steward or the stewardess, if the oxygen mask comes down, put it on yourself first before you help others. So, as we continue to go through challenging time, taking care of yourself as a leader, making sure you meditate, you reflect, you exercise, you ask for help either from your personal board of directors, your best friends, that’s the key thing, that’s going to be the way that we can then help others. So, take care of yourself first. RITHOLTZ: Quite interesting. We have been speaking with Hubert Joly, former Chairman and CEO at Best Buy and currently a lecturer at Harvard Business School. Thank you, Hubert, for being so generous with your time. If you enjoy this conversation, be sure and check out any of our previous 376 former discussions that we’ve had. You can find those at iTunes, Spotify, Acast, wherever you feed your podcast fix. We love your comments, feedback and suggestions. Write to us at mibpodcast@bloomberg.net. You can sign up for my daily reads, you can find those at ritholtz.com. Follow me on Twitter @Ritholtz. I would be remiss if I did not thank the crack staff that helps put these conversations together each week, Charlie Vollmer is my audio engineer extraordinaire, Atika Valbrun is my project manager, Paris Wald is my producer, Michael Batnick is my researcher. I’m Barry Ritholtz. You’ve been listening to Masters in Business on Bloomberg Radio   ~~~   The post Transcript: Hubert Joly appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureSep 27th, 2021

Facebook Owner Meta Relaxes Rules On Cryptocurrency Adverts

Facebook Owner Meta Relaxes Rules On Cryptocurrency Adverts Authored by Naveen Athrappully via The Epoch Times, Meta, formerly known as Facebook, updated its ad platform criteria for cryptocurrencies on Wednesday, by expanding the number of accepted regulatory licenses from three to 27, citing an increase in regulations as well as the stability achieved in the industry. “Over the years the cryptocurrency landscape has matured and stabilized and experienced an increase in government regulation, which has helped to set clearer responsibilities and expectations for the industry,” said the Meta announcement. “Going forward, we will be moving away from using a variety of signals to confirm eligibility and instead requiring one of these 27 licenses,” it said. The complete list of regulators now approved by Facebook, including authorities like AUSTRAC (Australia), FINTRAC (Canada), BaFin (Germany), FSA (Japan), FCA (U.K.), FinCEN and NYSDFS from the United States, is now displayed on the company’s policy page. Crypto businesses can advertise on Meta platforms if approved by these authorities. The amended policy now allows these companies access to tax services related to crypto businesses, media, services based on blockchain technology but not offering any cryptocurrencies, and wallets used to store crypto tokens without the feature to buy, sell or swap, to post ads without prior written permission. Cryptocurrency exchanges and trading platforms, software that offers crypto lending and borrowing, wallets with features for buying and selling, and vendors selling hardware for mining need to obtain permission for running advertisements. “With more openness and transparency for what crypto companies can do, we will see more adoption for the cryptocurrency industry and the metaverse than ever before,” said Henry Love to CNBC. Love is a former Facebook employee and managing partner of Fundamental Labs, a venture capital firm investing in blockchain. “This is a game changer for mass adoption,” he added. The latest move by Meta comes on the heels of David Marcus, one of the executives responsible for the platform’s venture into cryptocurrencies, announcing his departure by the end of the year. Marcus was responsible for stewarding Libra, now Diem stablecoin, Facebook’s own digital currency that has been facing considerable obstacles since its 2019 announcement, including several high-profile partners abandoning the project and lawmakers criticizing the venture. Although Diem’s future remains speculative, Meta’s Novi cryptocurrency wallet has been launched allowing users to send and receive the USDP stablecoin, run by blockchain company Paxos. Stablecoin is a digital currency pegged to a “stable” reserve asset like gold or the U.S. dollar. Meta’s policy change will give digital currency exchanges around the world access to almost 3 billion users registered on the platform, which includes WhatsApp and Instagram. The company said that the rules may be amended further “as the industry changes,” and more licenses may be added to the list as they become eligible. Tyler Durden Fri, 12/03/2021 - 14:40.....»»

Category: blogSource: zerohedgeDec 3rd, 2021

There are 10 million jobs open in the US. The problem is that many people"s lives are not set up for work right now.

Millions of Americans want to get back to work, but lack of childcare options, flexibility, and adequate wages are keeping them away. Pedestrians walk by a "Now Hiring" sign outside a store on August 16, 2021 in Arlington, Virginia.Olivier Douliery/AFP/Getty Images 10 million job openings in the US remain unfilled. The November jobs report showed millions of Americans are not content with economic conditions right now. Reasons why include low wages, lack of childcare options, and no mandated paid leave. Even with 10 million job openings in the US, the November jobs report added just 210,000 payrolls, badly missing expectations. The reason could be simple: conditions in the country just aren't good enough for people to be returning to work.As Insider reported, at least 12.4 million Americans are not getting what they need out of the economy right now. According to data from the Bureau of Labor Statistics, among the 7.4 million Americans who fell in the unemployed category, 2.2 million of them have been struggling to find a job for for at least 27 weeks. In addition, 4.3 million of them are employed part-time due to economic reasons, and 5.9 million of them are not actively seeking work but say they want a job. None of those categories saw much improvement in their job prospects in November despite the 10 million job openings in the country, and it could come down to low wages, lack of childcare options, and restricted paid leave, among other things, that are driving the labor shortage.Insider's Juliana Kaplan reported that during the pandemic, people's standards have changed and they will no longer put up with low wages. The leisure and hospitality sector, for example, has been leading hiring growth over recent months, but in November, employment there "changed little," according to the BLS, and wages for nonsupervisory employees in the industry actually went down.Childcare is another leading issue dominating the labor shortage. The number of daycare workers is continuing to drop, and soaring childcare costs are making it difficult for parents to return to work when they have to take care of their kids at home. The lack of national paid family and medical leave presents a similar problem. Currently, the US guarantees zero days of paid leave, which disproportionately keeps women out of the labor force. Democratic lawmakers — including Vermont Sen. Bernie Sanders — want to change that in President Joe Biden's Build Back Better agenda, calling the current US policy "a disgrace."—Bernie Sanders (@SenSanders) November 30, 2021 Four weeks of paid leave made it into the House version of the bill, and Vicki Shabo, a paid-leave expert at the think tank New America, previously told Insider it would be a game-changer for millions of Americans who don't have access to paid leave."This will have implications on women's labor force participation and earnings, on the ability of people caring for loved ones to be able to remain in the workforce, and to improve their financial security, both in the short term and for retirement," Shabo said. But the measure risks getting cut out of the Senate's version of the bill, which won't help with filling the millions of job openings in the country – especially as COVID-19 lingers and people are hesitant to return to work due to health concerns. While Biden maintains his outlook that economic recovery from the pandemic continues to be strong, conditions for workers need to improve so they can feel the same.Read the original article on Business Insider.....»»

Category: smallbizSource: nytDec 3rd, 2021

MLB Opening Day Threatened By First Work Stoppage Since 1995

IRVING, Texas — Major League Baseball plunged into its first work stoppage in a quarter-century when the sport’s collective bargaining agreement expired Wednesday night and owners immediately locked out players in a move that threatens spring training and opening day. The strategy, management’s equivalent of a strike under federal labor law, ended the sport’s labor… IRVING, Texas — Major League Baseball plunged into its first work stoppage in a quarter-century when the sport’s collective bargaining agreement expired Wednesday night and owners immediately locked out players in a move that threatens spring training and opening day. The strategy, management’s equivalent of a strike under federal labor law, ended the sport’s labor peace after 9,740 days over 26 1/2 years. Teams decided to force the long-anticipated confrontation during an offseason rather than risk players walking out during the summer, as they did in 1994. Players and owners had successfully reached four consecutive agreements without a work stoppage, but they have been accelerating toward a clash for more than two years. [time-brightcove not-tgx=”true”] “We believe that an offseason lockout is the best mechanism to protect the 2022 season,” baseball Commissioner Rob Manfred wrote in a letter to fans. “We hope that the lockout will jumpstart the negotiations and get us to an agreement that will allow the season to start on time. This defensive lockout was necessary because the players’ association’s vision for Major League Baseball would threaten the ability of most teams to be competitive.” Talks that started last spring ended Wednesday after a brief session of mere minutes with the sides far apart on the dozens of key economic issues. Management’s negotiators left the union’s hotel about nine hours before the deal lapsed at 11:59 p.m. EST. MLB’s 30 controlling owners held a brief digital meeting to reaffirm their lockout decision, and MLB delivered the announcement of its fourth-ever lockout — to go along with five strikes — in an emailed letter to the Major League Baseball Players Association. “This drastic and unnecessary measure will not affect the players’ resolve to reach a fair contract,” union head Tony Clark said in a statement. “We remain committed to negotiating a new collective bargaining agreement that enhances competition, improves the product for our fans, and advances the rights and benefits of our membership.” This stoppage began 30 days after Atlanta’s World Series win capped a complete season following a pandemic-shortened 2020 played in empty ballparks. The lockout’s immediate impacts were a memo from MLB to clubs freezing signings, the cancellation of next week’s annual winter meetings in Orlando, Florida, and banishing players from team workout facilities and weight rooms while perhaps chilling ticket sales for 2022. The union demanded change following anger over a declining average salary, middle-class players forced out by teams concentrating payroll on the wealthy and veterans jettisoned in favor of lower-paid youth, especially among clubs tearing down their rosters to rebuild. “As players we see major problems with it,” New York Mets pitcher Max Scherzer said of the 2016 agreement. “First and foremost, we see a competition problem and how teams are behaving because of certain rules that are within that, and adjustments have to be made because of that in order to bring out the competition.” Eleven weeks remain until pitchers and catchers are to report for spring training on Feb. 16, leaving about 70 days to reach a deal allowing for an on-time start. Opening day is set for March 31, and a minimum of three weeks of organized workouts have been required in the past. Management, intent on preserving salary restraints gained in recent decades, rejected the union’s requests for what teams regarded as significant alterations to the sport’s economic structure, including lowering service time needed for free agency and salary arbitration. “We offered to establish a minimum payroll for all clubs to meet for the first time in baseball history; to allow the majority of players to reach free agency earlier through an age-based system that would eliminate any claims of service time manipulation; and to increase compensation for all young players,” Manfred wrote. “When negotiations lacked momentum, we tried to create some by offering to accept the universal designated hitter, to create a new draft system using a lottery similar to other leagues.” Many clubs scrambled to add players ahead of the lockout, committing to more than $1.9 billion in new contracts — including a one-day record of more than $1.4 billion Wednesday. Two of the eight members of the union’s executive subcommittee signed big deals: Texas infielder Marcus Semien ($175 million) and Scherzer ($130 million). “This is actually kind of fun,” Scherzer said. “I’m a fan of the game, and to watch everybody sign right now, to actually see teams competing in this kind of timely fashion, it’s been refreshing because we’ve seen freezes for the past several offseasons.” No player remains active from the 232-day strike that cut short the 1994 season, led to the first cancellation of the World Series in 90 years and caused the following season to start late. The average salary dropped from $1.17 million before the strike to $1.11 million but then resumed its seemingly inexorable rise. It peaked at just under $4.1 million in 2017, the first season of the latest CBA, but likely will fall to about $3.7 million when this year’s final figures are calculated. That money is concentrated heavily at the top of the salary structure. Among approximately 1,955 players who signed major league contracts at any point going into the regular season’s final month, 112 had earned $10 million or more this year as of Aug. 31, of which 40 made at least $20 million, including prorated shares of signing bonuses. There were 1,397 earning under $1 million, of which 1,271 were at $600,000 or less and 332 under $100,000, a group of younger players who shuttle back and forth to the minors. A union statement claimed the lockout “was specifically calculated to pressure players into relinquishing rights and benefits, and abandoning good-faith bargaining proposals that will benefit not just players, but the game and industry as a whole. … We have been here before, and players have risen to the occassion time and again — guided by a solidarity that has been forged over generations.” The union has withheld licensing money, as it usually does going into bargaining; cash, U.S. Treasury securities and investments totaled $178.5 million last Dec. 31, according to a financial disclosure form filed with the U.S. Department of Labor. Some player agents have speculated that management’s credit lines already may be pressured following income deprivation caused by the coronavirus pandemic, but the clubs’ finances are more opaque publicly than that of the union, making it difficult to ascertain comparative financial strength to withstand a lengthy work stoppage. Manfred succeeded Bud Selig as commissioner in 2015 following a quarter-century as an MLB labor negotiator. He was unusually critical publicly of the union’s stance. “They never wavered from collectively the most extreme set of proposals in their history,” he said, “including significant cuts to the revenue-sharing system, a weakening of the competitive balance tax, and shortening the period of time that players play for their teams. All of these changes would make our game less competitive.” ___ Blum reported from New York and Hawkins from Irving, Texas. AP Sports Writer Will Graves contributed to this report......»»

Category: topSource: timeDec 2nd, 2021

Futures Rebound Fizzles On Slowing iPhone Demand, Omicron Fears

Futures Rebound Fizzles On Slowing iPhone Demand, Omicron Fears U.S. index futures regained some ground alongside Asian markets while European stocks slumped to session lows in a delayed response to yesterday's late Omicron-driven US selloff, as markets remained volatile following the biggest two-day plunge in more than a year, spurred by concern about the omicron coronavirus variant and Federal Reserve tightening. Investors await data for unemployment claims, as well as earnings from companies including Dollar General and Kroger. Tech is the weakest sector, dropping in sympathy after Apple warned its suppliers of slowing iPhone demand. Nasdaq futures pared earlier gains of up to 0.8% to trade down 0.1% while S&P futures are only 0.2% higher after rising as much as 0.9%. While the knee-jerk reaction of stock investors may “continue to be to take profits before the end of the year,” there is “plenty of liquidity available to drive stock prices higher as dip-buyers enter the market,” Ed Yardeni wrote in a note. The U.S. economy grew at a modest to moderate pace through mid-November, while price hikes were widespread amid supply-chain disruptions and labor shortages, the Federal Reserve said in its Beige Book survey Tuesday. Cruise-ship operator Carnival jumped 3.8% in premarket trading, while Pfizer and Moderna fell as the World Health Organization said that existing vaccines will likely protect against severe cases of the variant. Boeing contracts gained 3.4% after a report that the flagship 737 Max aircraft has regained airworthiness approval in China. With lots of uncertainty surrounding the pandemic and Fed policy, the size of potential market swings is still considerable.  Here are some other notable premarket movers today: Apple (AAPL US) shares fell 1.8% in premarket trading after the iPhone maker was said to tell suppliers that demand for its flagship product has slowed. Wall Street analysts, however, remained bullish. U.S. stocks tied to former President Donald Trump rise in premarket trading following a report his media group is in talks to raise new financing. Digital World Acquisition (DWAC US) +24%, Phunware (PHUN US) +38%. Katapult (KPLT US) shares sink 14% in premarket after the financial technology firm said its gross originations over a two-month period were lower than 2020 levels. Vir (VIR US) shares jump 8.1% in premarket trading after its Covid-19 antibody treatment, co-developed with Glaxo, looked to be effective against the new omicron variant in early testing. Snowflake (SNOW US) is up 17% premarket following quarterly results that impressed analysts, though some raise questions over the data software company’s valuation. CrowdStrike (CRWD US) shares jumped 5.1% in premarket after it boosted its revenue forecast for the full year. Square’s (SQ US) shares are 0.4% higher premarket. Corporate name change to Block Inc. indicates “a symbolic rebirth,” according to Barclays as it shows a broader set of possibilities than those of a pure payments company. Okta’s (OKTA US) shares advanced in postmarket trading. 3Q results show the cybersecurity company is well- positioned to deliver growth, even if some analysts say its guidance looks conservative and that its growth was not as strong as in prior quarters. The Omicron variant also hurt risk appetite, making the safe-haven bonds more attractive to investors, pushing yields down - although yields picked up again in early European trading. Volatility in equity markets as measured by the Vix hit its highest since February on Wednesday, before easing on Thursday, but remained well above this year’s average and almost twice as high as a month ago. Investors are braced for volatility to continue through December, stirred by tightening central-bank policies to fight inflation just as the omicron variant complicates the outlook for the pandemic recovery. The recent market turmoil may offer investors a chance to position for a trend reversal in reopening and commodity trades, according to JPMorgan Chase & Co. "Investors will need to maintain their calm during a period of uncertainty until the scientific data give a clearer picture of which scenario we face," said Mark Haefele, chief investment officer at UBS Global Wealth Management in Zurich. “This, in turn, will help shape the reaction of central bankers." Also weighing on stock markets, and flattening the U.S. yield curve, were remarks by Federal Reserve Chair Jerome Powell, who said that he would consider a faster end to the Fed's bond-buying programme, which could open the door to earlier interest rate hikes. In his second day of testimony in Congress on Wednesday, Powell reiterated that the U.S. central bank needs to be ready to respond to the possibility that inflation does not recede in the second half of next year. read more "In this past what we’ve seen is central banks using COVID as an excuse to remain dovish, and what we're seeing is central banks turn hawkish despite rising concerns around COVID, so it is a bit of a shift in communication," said Mohammed Kazmi, portfolio manager at UBP.  That said, the market is now so oversold, this is where we usually see aggressive dip-buying. In Europe, tech companies were the worst performers after Apple warned its component suppliers of slowing demand for its iPhone 13, the news dragged index heavyweight ASML Holding NV more than 4%. Meanwhile, travel shares were among the worst performers as the omicron variant continued to pop upin countries around the world, including the U.S., Norway, Ireland and South Korea. The Euro Stoxx 50 dropped as much as 1.7% while the Stoxx 600 Index fell 1.5%, extending declines to trade at a session low, with all sectors in the red and led lower by technology and travel stocks. The Stoxx 600 Technology Index slumped as much as 3.9%, the most in two months. Vifor Pharma surged by a record 18% following a report that Australia’s CSL is in advanced talks to acquire Swiss drugmaker. Here are some of the biggest European movers today: Vifor Pharma shares rise as much as 18% on a report that Australia’s CSL is in advanced talks to acquire the Swiss-based drug maker and developer while working with BofA on a A$4 billion funding package. Argenx jumps as much as 9.5% after Kepler Cheuvreux upgrades the stock to buy, saying the biotech company is on the brink of launching its first commercial product. Duerr gains as much as 7.2%, most since Aug. 10, after Deutsche Bank upgrades to buy and sets aa Street-high PT of EU60 for the German engineering company, citing the digitalization of the industry. Daily Mail & General Trust rises as much as 3.9% after Rothermere Continuation raised its bid for all DMGT’s Class A shares by 5.9% to 270p a share in cash. Klarabo surges as much as 54% as shares start trading on Nasdaq Stockholm after the Swedish property company raised SEK750m in an IPO. Eurofins Scientific declines for a fourth session, falling as much as 3.2%, as Goldman Sachs downgrades the company to neutral from buy “following strong outperformance YTD.” Deliveroo drops as much as 6.4% after an offering of 17.6m shares by CEO Will Shu and CFO Adam Miller at a price of 278p a share, representing a 4.2% discount to the last close. M&S falls as much as 3.4% after UBS cut its rating to neutral from buy, citing limited upside to its new price target as well as “little room for meaningful upgrades.” Earlier in the session, Asian stocks erased an earlier loss to trade slightly up, as traders continued to assess the potential impact of the omicron virus strain and the Federal Reserve’s efforts to keep inflation in check.  The MSCI Asia Pacific Index rose 0.2% after falling 0.4% in the morning. South Korea led regional gains, helped by large-cap chipmakers, while Japan was among the worst performers after the government dropped a plan for a blanket halt to all new incoming flight reservations. Asia’s equity benchmark is still down about 4% so far this year after rebounding in the past two sessions from a one-year low reached earlier this week. Despite the region’s underperformance against the U.S. and Europe, cheap valuations and foreign-investor positioning have prompted brokerages including Credit Suisse Group AG and Nomura Securities Co. Ltd. to turn bullish on Asia’s prospects next year. “Equity markets continue to play omicron tennis and traders looking for short-term direction should just wait for the next virus headline and then act accordingly,” said Jeffrey Halley, a senior market analyst at Oanda Corp. “Volatility, and not market direction, will be the winner this week.” Chinese technology shares including Alibaba Group Holding slid after Beijing was said to be planning to close a loophole used by the sector to go public abroad, fueling concern over existing overseas listings. Japanese equities declined, following U.S. peers lower after the first American case of the omicron coronavirus variant was confirmed. Electronics makers and telecoms were the biggest drags on the Topix, which fell 0.5%. SoftBank Group and TDK were the largest contributors to a 0.7% loss in the Nikkei 225.  The S&P 500 posted its worst two-day selloff since October 2020 after the first U.S. case of the new strain was reported. Federal Reserve Chair Jerome Powell reiterated that officials should consider a quicker reduction of monetary stimulus amid elevated inflation. “Truth is, there’s probably a lot of people who are wanting to buy stocks at some point,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management. “But, with omicron still an unknown, people are responding sensitively to news development, and that’s keeping them from buying.” India’s benchmark equity index climbed for a second day, led by software exporters, on an improving economic outlook and as investors grabbed some beaten-down stocks after recent declines. The S&P BSE Sensex Index rose 1.4% to close at 58,461.29 in Mumbai, the biggest advance since Nov. 1. Its two-day gains increased to 2.5%, the most since Aug. 31. The NSE Nifty 50 Index also surged by a similar magnitude. All of the 19 sector sub-indexes compiled by BSE Ltd. were up, led by a gauge of utilities companies. “India underperformed the global markets in recent weeks. Investors are now going for value buying in stocks at lower levels,” said A. K. Prabhakar, head of research at IDBI Capital Market Services. The Sensex gained in three of the past four sessions after plunging 2.9% on Friday, the biggest drop since April. The rally, however, is in contrast to most global peers which are witnessing volatility on worries over the spread of the omicron variant. High frequency indicators in India, such as tax collection and manufacturing activities, have shown robust growth in recent months, while the country’s economy expanded 8.4% in the quarter ended in September, according to an official data release on Tuesday. Mortgage lender HDFC contributed the most to the Sensex’s gain, increasing 3.9%. Out of 30 shares in the index, 27 rose and three fell. In rates, trading has been relatively quiet as bunds and gilts bull steepen a touch with risk offered, while cash TSYs bear flatten, cheapening ~5bps across the curve.Treasuries retraced part of yesterday’s rally that sent the benchmark 30-year rate to the lowest since early January. A large buyer of 5-year U.S. Treasury options targets the yield dropping around 17bps. 5s10s, 5s30s spreads flattened by ~1bp and ~2bp to multimonth lows; 10-year yields around 1.43%, cheaper by more than 3bp on the day while bunds and gilt yields are richer by ~1bp. Front-end and belly of the curve underperform vs long-end, while bunds and gilts outperform Treasuries. With little economic data slated, speeches by several Fed officials are main focal points. Peripheral spreads tighten with 10y Spain outperforming after well received auctions, albeit with a small size on offer. U.S. economic data slate includes November Challenger job cuts (7:30am) and initial jobless claims (8:30am) In FX, the Bloomberg Dollar Spot Index fell to a day low in the European session and the greenback traded mixed versus its Group-of-10 peers as most crosses consolidated in recent ranges. Two-week implied volatility in the major currencies trades in the green Thursday as it now captures the next policy decisions by the world’s major central banks. Euro- dollar on the tenor rises by as much as 138 basis points to touch 8.22%, highest in a year; the relative premium, however, remains below parity as realized has risen to levels unseen since August 2020. The pound rose along with some other risk- sensitive currencies following the British currency’s three-day slump against the dollar. Long-end gilts underperformed, leading to some steepening of the curve. The yen fell for the first day in three while the Swiss franc fell a second day. The Hungarian forint rose to almost a three-week high after the central bank in Budapest raised the one-week deposit rate by 20 basis points to 3.10%. Economists in a Bloomberg survey were evenly split in predicting a 10 or 20 basis point increase. The Turkish lira resumed its slump after President Recep Tayyip Erdogan abruptly replaced his finance minister amid deepening rifts in the administration over aggressive interest-rate cuts that have undermined the currency and fueled inflation. Poland’s central bank Governor Adam Glapinski sent the zloty to a three-week high against the euro on Thursday with his changed rhetoric on inflation, which he no longer sees as transitory after prices surged at the fastest pace in more than two decades. Currency market volatility also rose, with euro-dollar one-month volatility gauges below Monday's one-year peak but still at elevate levels . "Liquidity in some areas of the market is still quite poor as people grapple with this news and as we head towards year-end, a lot of it is really liquidity driven, which is leading to some volatility," said UBP's Kazmi. "Even in the most liquid market of the U.S. treasury market we've seen some fairly large moves on very little newsflow at times." In commodities, crude futures extend Asia’s gains. WTI adds 2.2% near $67, Brent near $70.50 ahead of today’s OPEC+ meeting. Spot gold finds support near Tuesday’s, recovering somewhat to trade near $1,774/oz. Base metals are mixed: LME aluminum drops as much as 1.1%, nickel, zinc and tin hold in the green Looking at the day ahead now, and central bank speakers include the Fed’s Quarles, Bostic, Daly and Barkin, as well as the ECB’s Panetta. Data releases include the Euro Area unemployment rate and PPI inflation for October, while there’s also the weekly initial jobless claims. Lastly, the OPEC+ group will be meeting. Market Snapshot S&P 500 futures up 0.7% to 4,540.25 STOXX Europe 600 down 1.0% to 466.37 MXAP up 0.2% to 192.07 MXAPJ up 0.7% to 629.36 Nikkei down 0.7% to 27,753.37 Topix down 0.5% to 1,926.37 Hang Seng Index up 0.5% to 23,788.93 Shanghai Composite little changed at 3,573.84 Sensex up 1.3% to 58,436.52 Australia S&P/ASX 200 down 0.1% to 7,225.18 Kospi up 1.6% to 2,945.27 Brent Futures up 2.4% to $70.53/bbl Gold spot down 0.6% to $1,771.73 U.S. Dollar Index little changed at 96.03 German 10Y yield little changed at -0.35% Euro little changed at $1.1320 Top Overnight News from Bloomberg Federal Reserve Bank of Cleveland President Loretta Mester said she’s “very open” to scaling back the Fed’s asset purchases at a faster pace so it can raise interest rates a couple of times next year if needed A United Nations gauge of global food prices rose 1.2% last month, threatening to make it more expensive for households to put a meal on the table. It’s more evidence of inflation soaring in the world’s largest economies and may make it even harder for the poorest nations to import food, worsening a hunger crisis Germany is poised to clamp down on people who aren’t vaccinated against Covid-19 and drastically curtail social contacts to ease pressure on increasingly stretched hospitals Some investors buffeted by concerns about tighter monetary policy are turning their sights to China’s battered junk bonds, given they offer some of the biggest yield buffers anywhere in global credit markets Pfizer Inc. says data on how well its Covid-19 vaccine protects against the omicron variant should be available within two to three weeks, an executive said GlaxoSmithKline Plc said its Covid-19 antibody treatment looks to be effective against the new omicron variant in early testing A more detailed look at global markets courtesy of Newsquawk Asian equity markets traded tentatively following the declines on Wall St where all major indices extended on losses and selling was exacerbated on confirmation of the first Omicron case in the US, while the Asia-Pac region also contended with its own pandemic concerns. ASX 200 (-0.2%) was subdued amid heavy losses in the tech sector and with a surge of infections in Victoria state, although downside in the index was cushioned amid inline Retail Sales and Trade Balance, as well as M&A optimism after Woolworths made a non-binding indicative proposal for Australian Pharmaceutical Industries. Nikkei 225 (-0.7%) weakened after the government instructed airlines to halt inbound flight bookings for a month due to fears of the new variant and with auto names also pressured by declines in monthly sales amid the chip supply crunch. KOSPI (+1.6%) showed resilience amid expectations for lawmakers to pass a record budget today and recouped opening losses despite the record increase in daily infections and confirmation of its first Omicron cases, while the index also shrugged off the highest CPI reading in a decade which effectively supports the case for further rate increases by the BoK. Hang Seng (+0.6%) and Shanghai Comp. (-0.1%) were choppy following another liquidity drain by the PBoC and with tech pressured in Hong Kong as Alibaba shares extended on declines after recently slipping to a 4-year low in its US listing. Beijing regulatory tightening also provided a headwind as initial reports suggested China is to crack down on loopholes used by tech firms for foreign IPOs, although this was later refuted by China, and the CBIRC is planning stricter regulations on major shareholders of banks and insurance companies, as well as confirmed it will better regulate connected transactions of banks. Finally, 10yr JGBs were higher as prices tracked gains in global counterparts and amid the risk aversion in Japan, although prices are off intraday highs after hitting resistance during a brief incursion to the 152.00 level and despite the marginally improved metrics from 10yr JGB auction. Top Asian News Asia Stocks Swing as Investors Weigh Omicron Impact, Fed Views Apple Tells Suppliers IPhone Demand Slowing as Holidays Near Moody’s Cuts China Property Sales View on Financing Difficulties Faith in Singapore Leaders Hit by Record Covid Wave, Poll Shows Bourses across Europe have held onto losses seen at the cash open (Euro Stoxx 50 -1.4%; Stoxx -1.2%), as the region plays catchup to the downside seen on Wall Street – seemingly sparked by a concoction of hawkish Fed rhetoric and the discovery of the Omicron variant in the US. Nonetheless, US equity futures are firmer across the board but to varying degrees – with the cyclical RTY (+1.1%) and the NQ (+0.3%) the current laggard. European futures ahead of the cash open saw some mild fleeting impetus on reports GlaxoSmithKline's (-0.3%) COVID treatment Sotrovimab retains its activity against Omicron variant, and the UK MHRA simultaneously approved the use of Sotrovimab – but caveated that it is too early to know whether Omicron has any impact on effectiveness. Conversely, brief risk-off crept into the market following commentary from a South African Scientist who warned the country is seeing an exponential rise in new COVID cases with a predominance of Omicron variant across the country – with the variant causing the fastest ever community transmission - but expects fewer active cases and hospitalisations this wave. Back to Europe, Euro indices see broad-based losses whilst the downside in the FTSE 100 (-0.7%) is less severe amid support from its heavyweight Oil & Gas sector – the outperforming sector in the region. Delving deeper, sectors see no overarching theme nor bias – Food & Beverages, Autos and Banks are towards the top of the bunch, whilst Tech, Telecoms, and Travel &Leisure. Tech is predominantly weighed on by reports that Apple (-2% pre-market) reportedly told iPhone component suppliers that demand slowed down. As such ASML (-5.0%), STMicroelectronics (-4.4%) and Infineon (-3.6%) reside among the biggest losers in the Stoxx 600. Deliveroo (-5.3%) is softer following an offering of almost 18mln at a discount to yesterday's close. In terms of market commentary, Morgan Stanley believes that inflation will remain high over the next few months, in turn supporting commodities, financials and some cyclical sectors. The bank identifies beneficiaries including EDF (-1.5%), Engie (-1.2%), SSE (-0.2%), Legrand (-1.3%), Tesco (-0.5%), BT (-0.8%), Michelin (-1.6%) and Sika (-0.9%). Top European News Shell Kicks Off First Wave of Buybacks From Permian Sale Omicron Threatens to Prolong Pain in Bid to Vaccinate the World Apple, Suppliers Drop Premarket After Report Demand Slowed Valeo, Gestamp Gain After Barclays Raises to Overweight In FX, currency markets are still in a state of flux, or limbo bar a few exceptions, and the Greenback is gyrating against major peers awaiting the next major event that could provide clearer direction and a more decisive range break. Thursday’s agenda offers some scope on that front via US initial jobless claims and a host of Fed speakers, but in truth NFP tomorrow is probably more likely to be influential even though chair Powell has effectively given the green light to fast-track tapering from December. In the interim, the index continues to keep a relatively short leash around 96.000, and is holding within 96.138-95.895 confines so far today. JPY/CHF - Although risk considerations look supportive for the Yen, on paper, UST-JGB/Fed-BoJ differentials coupled with technical impulses are keeping Usd/Jpy buoyant on the 113.00 handle, with additional demand said to have come from Japanese exporters overnight. However, the headline pair may run into offers/resistance circa 113.50 and any breach could be capped by decent option expiry interest spanning 113.60-75 (1.5 bn). Similarly, the Franc has slipped back below 0.9200 on yield and Swiss/US Central Bank policy stances plus near term outlooks, and hardly helped by a slowdown in retail sales. GBP/CAD/NZD - All firmer vs their US counterpart, though again well within recent admittedly wide ranges, and the Pound perhaps more attuned to Eur/Gbp fluctuations as the cross retreats to retest 0.8500 and Cable rebounds to have another look at 1.3300 where a fairly big option expiry resides (850 mn). Indeed, Sterling has largely shrugged off the latest BoE Monthly Decision Maker Panel release that in truth did not deliver any clues on what is set to be another knife-edge MPC gathering in December. Elsewhere, the Loonie is straddling 1.2800 with eyes on WTI crude ahead of Canadian jobs data on Friday and the Kiwi is hovering above 0.6800 after weaker NZ Q3 terms of trade were offset to some extent by favourable Aud/Nzd headwinds. AUD/EUR - Both narrowly mixed against US Dollar, with the Aussie pivoting 0.7100 in wake of roughly in line trade and retail sales data overnight, but wary about the latest virus outbreak in the state of Victoria, while the Euro is sitting somewhat uncomfortably on the 1.1300 handle amidst softer EGB yields and heightened uncertainty about what the ECB might or might not do in December on the QE guidance front. In commodities, WTI and Brent front-month futures are firmer intraday as traders gear up for the JMMC and OPEC+ confabs at 12:00GMT and 13:00GMT, respectively. The jury is still split on what the final decision could be, but the case for OPEC+ to pause the planned monthly relaxation of output curbs by 400k BPD has been strengthening against the backdrop of Omicron coupled with the coordinated SPR releases (an updating Rolling Headline is available on the Newsquawk headline feed). As expected, OPEC sources have been testing the waters in the run-up, whilst yesterday's JTC/OPEC meetings largely surrounded the successor to the Secretary-General position. Oil market price action will likely be centred around OPEC+ today in the absence of any macro shocks. WTI Jan resides around USD 66.50/bbl (vs low USD 65.41/bbl) whilst Brent Feb briefly topped USD 70/bbl (vs low USD 68.73/bbl). Elsewhere, spot gold has eased further from the USD 1,800/oz after failing to sustain a break above the 50, 100 and 200 DMAs which have all converged to USD 1,791/oz today. LME copper is on the backfoot amid the cautious risk sentiment, with the red metal back under USD 9,500/t but off overnight lows. US Event Calendar 7:30am: Nov. Challenger Job Cuts -77.0% YoY, prior -71.7% 8:30am: Nov. Initial Jobless Claims, est. 240,000, prior 199,000; 8:30am: Nov. Continuing Claims, est. 2m, prior 2.05m 9:45am: Nov. Langer Consumer Comfort, prior 52.2 DB's Jim Reid concludes the overnight wrap With investors remaining on tenterhooks to find out some definitive information on the Omicron variant, yesterday saw markets continue to see-saw for a 4th day running. Following one of the biggest sell-offs of the year on Friday, we then had a partial bounceback on Monday, another bout of fears on Tuesday (not helped by the prospect of faster tapering), and yesterday saw another rally back before risk sentiment turned sharply later in the day as an initial case of the Omicron variant was discovered in the US. You can get some idea of this by the fact that Europe’s STOXX 600 (+1.71%) posted its best daily performance since May, whereas the S&P 500 moved from an intraday high where it had been up +1.88%, before shedding all those gains and more to close -1.18% lower. In fact, that decline means the S&P has now lost over -3% in the last two sessions, marking its worst 2-day performance in over a year, and this heightened volatility saw the VIX index close back above 30 for the first time since early February. In terms of developments about Omicron, we’re still in a waiting game for some concrete stats, but there was positive news early on from the World Health Organization’s chief scientist, who said that they think vaccines “will still protect against severe disease as they have against the other variants”. On the other hand, there was further negative news out of South Africa, as the country reported 8,561 infections over the previous day, with a positivity rate of 16.5%. That’s up from 4,373 cases the day before, and 2,273 the day before that, so all eyes will be on whether this trend continues, and also on what that means for hospitalisation and death rates over the days ahead. Against this backdrop, calls for fresh restrictions mounted across a range of countries, particularly on the travel side. In the US, it’s been reported already by the Washington Post that President Biden could today announce stricter testing requirements for arriving travellers. Meanwhile, France is moving to require non-EU arrivals to show a negative test before arrival, irrespective of their vaccination status. The EU Commission further said that member states should conduct daily reviews of essential travel restrictions, and Commission President von der Leyen also said that the EU should discuss the topic of mandatory vaccinations. There was also a Bloomberg report that German Chancellor Merkel would recommend mandatory vaccinations from February 2022, according to a Chancellery paper that they’d obtained. That came as Slovakia sought to incentivise vaccination uptake among older citizens, with the cabinet backing a €500 hospitality voucher for residents over 60 who’ve been vaccinated. As on Tuesday, the other main headlines yesterday were provided by Fed Chair Powell, who re-emphasised his more hawkish rhetoric around inflation before the House Financial Services Committee. Notably he said that “We’ve seen inflation be more persistent. We’ve seen the factors that are causing higher inflation to be more persistent”, though yields on 2yr Treasuries (-1.4bps) already had the shift in stance priced in. New York Fed President Williams echoed that view in an interview, noting it would be germane to discuss and decide whether it was appropriate to accelerate the pace of tapering at the December FOMC. 10yr yields (-4.1bps) continued their decline, predominantly driven by the turn in sentiment following the negative Omicron headlines. That latest round of curve flattening left the 2s10s slope at its flattest level since early January around the time of the Georgia Senate race that ushered in the prospect of much larger fiscal stimulus. In terms of markets elsewhere, strong data releases helped to support risk appetite earlier in yesterday’s session, with investors also looking forward to tomorrow’s US jobs report for November that will be an important one ahead of the Fed’s decision in less than a couple of weeks’ time. The ISM manufacturing release for November saw the headline number come in roughly as expected at 61.1 (vs. 61.2 expected), and also included a rise in both the new orders (61.5) and the employment (53.3) components relative to last month. Separately, the ADP’s report of private payrolls for November likewise came in around expectations, with a +534k gain (vs. +526k expected). Staying on the US, one thing to keep an eye out over the next 24 hours will be any news on a government shutdown, with funding currently set to run out by the weekend as it stands. The headlines yesterday weren’t promising for those hoping for an uneventful, tidy resolution, as Politico indicated that some Congressional Republicans would not agree to an expedited process to fund the government should certain vaccine mandates remain in place. An expedited process is necessary to avoid a government shutdown at the end of the week, so one to watch. After the incredibly divergent equity performances in the US and Europe, we’ve seen a much more mixed performance in Asia overnight, with the KOSPI (+1.09%), Hang Seng (+0.23%), and CSI (+0.23%) all advancing, whereas the Shanghai Composite (-0.05%) and the Nikkei (-0.60%) are trading lower. In terms of the latest on Omicron, authorities in South Korea confirmed five cases, which came as the country also reported that CPI in November rose to its fastest since December 2011, at +3.7% (vs +3.1% expected). Separately in China, 53 local Covid-19 cases were reported in Inner Mongolia, whilst Harbin province reported 3 local cases. Looking forward, futures are indicating a positive start in the US with those on the S&P 500 (+0.64%) pointing higher. Back in Europe, sovereign bonds lost ground yesterday, and yields on 10yr bunds (+0.5bps), OATs (+1.1bps) and BTPs (+4.2bps) continued to move higher. Interestingly, there was a continued widening in peripheral spreads, with the gap between both Italian and Spanish 10yr yields over bunds reaching their biggest level in over a year, at 135bps and 77bps, respectively. Another factor to keep an eye on in Europe is another round of increases in natural gas prices, with futures up +3.42% to their highest level since mid-October yesterday. Lastly on the data front, the main other story was the release of the manufacturing PMIs from around the world. We’d already had the flash readings from a number of the key economies, so they weren’t too surprising, but the Euro Area came in at 58.4 (vs. flash 58.6), Germany came in at 57.4 (vs. flash 57.6), and the UK came in at 58.1 (vs. flash 58.2). One country that saw a decent upward revision was France, with the final number at 55.9 (vs. flash 54.6), which marks an end to 5 successive monthly declines in the French manufacturing PMI. One other release were German retail sales for October, which unexpectedly fell -0.3% (vs. +0.9% expected). To the day ahead now, and central bank speakers include the Fed’s Quarles, Bostic, Daly and Barkin, as well as the ECB’s Panetta. Data releases include the Euro Area unemployment rate and PPI inflation for October, while there’s also the weekly initial jobless claims. Lastly, the OPEC+ group will be meeting. Tyler Durden Thu, 12/02/2021 - 07:57.....»»

Category: dealsSource: nytDec 2nd, 2021

How ‘Subscribe to Me’ Became the Future of Work

Creators are bumping up against the limits of the platforms they use In August, Savannah’s entire monthly income was at stake. OnlyFans, the social media platform where she built her career, making an average of $2,000 a month from subscribers, had just announced it would be removing content like hers from the site. But there was little she could do about it. She remembers thinking: “OK, well, this is another Thursday, I might as well finish my Chick-Fil-A, and I’m just gonna chill here and wait for us to get some sort of response.” Savannah, 24, is part of a vibrant, supportive community of online sex workers that underwrite OnlyFans’s considerable financial success; it’s now valued at over $1 billion. But in a move that may foreshadow changes to come, that community was shaken when OnlyFans announced it would be banning explicit content on the site. “The sky falls on OnlyFans, like, every three or four months,” Savannah says, wryly. [time-brightcove not-tgx=”true”] She could’ve gotten a more standard job when she graduated from college in 2020 with a business degree—maybe at a bank, as a mortgage loan officer. But while career-hunting, she was working three part-time jobs and her boyfriend at the time suggested trying out OnlyFans. She opened an account in January 2020, posting sassy videos and photos that showed off her passion for Star Wars cosplay and her cheeky sense of humor to attract subscribers. “It was nerve-wracking,” Savannah admits. At first, the subscribers just trickled in; she made $80 that month. Then the pandemic lockdowns started, and Savannah’s online star began to rise. “It was an extreme case of right place, right time,” she says. “Everyone was suddenly locked inside. And they were horny. And it just all came together.” By September 2020, she had earned enough money to buy her own house—a goal that had always seemed elusive with a traditional career path. “I never, ever thought that I would be stable enough to buy a house, period, in my lifetime,” she says. That sense of stability was put to the test by the new August policy—briefly. OnlyFans backtracked just days later. For many, online sex work is easy to ignore or view as the internet’s titillating sideshow. Historically, though, the conditions of sex work serve as an indicator of the health of a society, and the inconclusive OnlyFans incident could predict the future of the growing digital creator economy and its workers. Annie Flanagan for TIME“Not only has it absolutely changed the trajectory of my life forever, but I have fun, I’m my own boss,” says Savannah. Savannah considers herself half sex worker and half “online creator,” a burgeoning and nebulous category of workers who have turned to online platforms to profit off their talents and speak to niche audiences. But the creator economy that took off around 2011 with YouTube has evolved as creators seek autonomy over their intellectual property and freedom from brand sponsorships and social media restrictions. Writers, gamers, academics, sex workers, chefs, athletes, artists: anyone with a point of view, or a video to share, has flocked to sites like Twitch, OnlyFans, Patreon and Substack in hopes of selling their skills directly to their fans. A September study from the Influencer Marketing Factory estimates some 50 million people around the world participate in this economy, broadly—that’s a third the size of the entire U.S. workforce. The study valued the creator market north of $100 billion in 2021. Direct subscription creators are a fraction of that, but a rapidly growing one. There are over a million creators on OnlyFans; streaming platform Twitch boasts over 8 million active streamers; Patreon, which hosts pay-to-view visual and written content, says it has over 200,000 active accounts. And the money generated by this new class keep going up, with OnlyFans announcing it has facilitated over $3 billion in payouts to accounts since their founding five years ago. Patreon says its creator accounts have racked up over $2 billion. Twitch’s in-app purchases neared $200 million in the first half of 2021 alone. Creators skew Millennial and Gen Z; digital natives are, after all, more prepared to capitalize on and take risks online. One study from research firm PSFK suggested that over 50% of Gen Z Americans are interested in becoming an “influencer” as a career. But some of the most successful subscription creators—historian Heather Cox Richardson, musician Amanda Palmer, photographer Brandon Stanton, and model Blac Chyna—are in their 30s or older, and were well established in their careers before selling their skills online, a fact that lends the subscription creator economy more credence. These days, Savannah—who goes by Savannah Solo on her Twitter, Instagram, TikTok and OnlyFans pages—counts hundreds of thousands of subscribers to her public profiles, and 6,500 paying subscribers to her more risqué content on OnlyFans. She doesn’t want to stop. “Not only has it absolutely changed the trajectory of my life forever, but I have fun, I’m my own boss, I wake up and I put on makeup and I wear a stupid costume and make fun content. You can decide if you want to be a persona—or if you just want to be yourself,” she says. But, as she has learned in August, the reality of a creator career is more complicated. Annie Flanagan for TIMESavannah looks through OnlyFans messages while laying at home on Oct. 18. The problem with platforms The job title “creator” is a new invention, born in the past decade thanks to the rise of self-publishing opportunities. First there was YouTube, the ür-influencer platform. Then came Facebook, Twitter and Instagram. These web2 behemoths offered anyone the ability to build a fanbase with little more than an internet connection (and, for the most successful, access to a way to photograph or video themselves). At first, little money was transferred into the hands of the creators; success in the form of wide viewership was a badge of honor, not a moneymaking scheme. That changed with the rise of models in which creators received a cut of advertising associated with their content (like pre-roll video ads on YouTube) and sponsored content and ambassadorship programs (like many of Instagram’s influencer programs). This kept content free for fans while still paying the creators—and it’s the model that still dominates the market. But positioning image-conscious brands in between fans and creators who value authenticity is not always a natural fit. Brands drop creators when they post something the brand doesn’t like. Creators lose autonomy when they spend all their time crafting sponsored content. Enter the paid social media model, in which audiences can contribute directly to their favorite creators. “From the creators’ point of view, it gives them more control and empowerment,” says OnlyFans CEO and founder Tim Stokely, about the potential for direct-to-creator paid social media to be the economic engine of the online future. The company is famous for featuring sex worker creators like Savannah, but Stokely is pushing the platform’s PG accounts, where users can subscribe to a chef’s cooking videos or a trainer’s workouts. Read More: Why OnlyFans Suddenly Reversed its Decision to Ban Sexual Content Twitch was early to this game, launching in 2011. “The digital patronage model we see popping up today in other iterations exists because of Twitch’s early entry in and focus on the creator economy,” says Mike Minton, Vice President of Monetization at Twitch. Twitch prefers to consider itself a “service” rather than a platform: it serves creators with access to audiences and monetizes their viewership, and serves fans by making it easy to watch and contribute. But it’s not all profit for creators. Hidden in the slick appeal of be-your-own-boss social media entrepreneurialism is the role of the platforms themselves, and sticky questions of ownership. Twitch, for instance, provides the necessary infrastructure for popular gamers to stream hours of high-resolution content to mass audiences of live viewers. But it also takes a 50% cut of any subscriptions. OnlyFans says the 30% it takes helps offset the costs of the security and privacy features that adult content in particular requires. Patreon takes from 5 to 12%, depending on your plan; Substack takes 10%, minus processing fees. Consummate middlemen, these companies have created low barriers to entry while still gatekeeping, at least financially. “There’s a history of artists being taken advantage of, and artists have to keep criticizing and keep skepticism at a high level,” says Jack Conte, CEO of Patreon. “I think that’s mission critical. Artists have to be educated, and choose wisely and watch platforms carefully.” Patreon, for its part, offers its users full access to their email lists in an attempt to offer greater control over their audience relationships. Patreon has had its share of controversy: a 2018 kerfuffle surrounded their choice to ban certain politically-extreme voices from the platform; payment snafus and hikes in processing fees have ruffled feathers; and their current content policies exclude sexually explicit work, to the frustration of some. The company is eager to try to keep up with creator-favored trends, however, announcing plans to integrate crypto payments and considering developing “creator coins,” and developing a native video player to more directly compete with YouTube. Stokely doesn’t try to promise financial stability or freedom to OnlyFans’ million-plus creators, especially given the complications of banking regulations (on which the company blamed the brief August ban of sexual content). He knows that change is inevitable, but he does promise one thing: OnlyFans will not become “littered with paid posts and adverts” like the free platforms. Annie Flanagan for TIME“I wake up and I put on makeup and I wear a stupid costume and make fun content. You can decide if you want to be a persona—or if you just want to be yourself,” Savannah says. Navigating an unsteady landscape Writer and musician Amanda Palmer, 45, is intimately acquainted with the challenges of creative autonomy. Palmer, the frontwoman of indie rock duo the Dresden Dolls, extricated herself from an album deal a decade ago, choosing to embrace independence—with all its financial risks—and gather income from her fans directly. “There’s been a general shift in consciousness, that people are no longer scratching their heads when an artist or a creator comes to you directly and says, Hey, I need 10 bucks,” she says. “You’re seeing it in right wing podcasting. And you’re seeing it in feminist journalism on Substack. And you’re seeing it with musicians and gamers on Patreon, and you’re seeing it with porn stars on OnlyFans.” Palmer started a Patreon in 2015, where she now posts bits of music, videos and blog posts to 12,000 paying subscribers. The direct, monetized line of communication with her fans has meant she could weather the pandemic storm—when she couldn’t play live concerts—using honesty and openness in the content she shares as bartering coin for their cash. She says she has made over $5 million in subscriptions to support her creative endeavors, although her net profit mostly just pays rent and living expenses. Still, it has been an effective solution to the conundrum of monetizing fame and artwork for a niche audience. Read More: The Livestream Show Will Go On. How COVID Has Changed Live Music—Forever Palmer’s experience with Patreon is a prime use-case for the company: a non-major artist finds financial freedom through direct-to-consumer content sharing. “Because of what’s happened over the last 10 years, there’s now hundreds of millions of creative people who identify as creators, putting their work online and already making a lot of money and want to be paid and want to build businesses,” Conte says. “Patreon is tiny; compared to the amount of creators in the world, we’re a speck.” But with $2 billion in payouts over the years, it’s proved to be a meaningful speck for a collection of creators. Conte says that about half the money that Patreon processes goes to creators who are making between $1,000 and $10,000 per month. “It’s not Taylor Swift rich, it’s not Rihanna rich. It’s a middle class of creativity: a whole new world of creators that are being enabled by this,” he says. It’s a group like Palmer: people who have a specific viewpoint, a built-in audience and an effective grasp on how to optimize their dynamic with fans. Still, even Palmer, who has “very warm feelings” about Patreon, recognizes that it can’t be trusted forever. “I’ve been ringing the warning bells for years about how dangerous it is to get into bed with a for profit company, and use them as the only avenue to reach your audience, right? Because it is dangerous, because at any moment, Facebook can take that away from you, at any moment, Patreon could sell up to Facebook and decide to change all of the rules of engagement. I really hope that doesn’t happen. But there are no guarantees in this dog eat dog tech world,” she says. “In order to protect myself, I always keep a lot of phone lines open with my community.” Annie Flanagan for TIMESavannah looks through photos with her assistant Cay. Healthy skepticism, and solidarity In her Instagram photos, Jahara Jayde doesn’t look real: technicolor eyes, luminous, airbrushed skin, ears elongated into elven tips. In her five-plus-hour Twitch streams every evening, though, she’s a bit more human, video chatting in real time with her thousand-plus viewers and slurping noodles from an unseen bowl as she plays Final Fantasy XIV through her dinnertime. When she streams, it’s just her and her subscribers. But she has discovered how vital it is to have a community of creators in this business, too. Twitch averages nearly 3 million concurrent viewers; in 2020, people watched nearly 20 billion hours of content on the site. By nature of its freewheeling live video DNA, it’s a place that is hard to regulate and populated by a wide array of characters. “I deal with racism on all of the platforms,” says Jahara, a 30-year-old BIPOC woman, citing in particular a recent influx of “hate raids” targeting BIPOC and LGBTQ+ creators on Twitch. Some creators even led a day-long streaming boycott to draw attention to the issue. Twitch has had to regulate the use of certain words and emotes (their version of custom emojis) in user chats in order to limit problematic language and content. Because of—and despite—that, Jahara has built a keenly supportive, tight-knit community that is expanding the definition of what it means to be a gamer or a creator, and who gets rewarded for the work. She’s a member of The Noir Network, a collective of Black femmes who work in content creation and help each other navigate the often-confusing Wild West of digital work, one that she is committed to continuing with. She loves the work, she just wants to make it better. Read More: The Metaverse Has Already Arrived. Here’s What That Actually Means Jahara didn’t mean to become a full-time gaming streamer when she first tried out Twitch in August 2020; she was already a business analyst with a side gig as a Japanese tutor, making use of her college degree. But soon she was gaining steam with eager subscribers: she got 300 in a month, more than enough to start monetizing her streams. “I was like, Oh, maybe I could be good at this,” she says over the phone from her home in Arizona. After just four months on Twitch, Jahara quit her day job. These days, thanks to Twitch’s subscription system, she brings in about $2,000 a month. With her tutoring clients, who she picked up because of her Twitch, she’s now matching her prior income. “And it’s awesome, because it’s doing the two things that I absolutely adore,” she says. “Ever since I was a little kid, my dad used to bring me into his room and talk to me about how I should work for myself, and the entrepreneurial spirit,” she says. She surprised herself by being able to take his advice. She has the freedom to be herself professionally, the flexibility to take care of her four-year-old daughter in the mornings before preschool, and the hope that her fiancé will eventually be able to leave his job as a manual laborer to support her online presence full time. (He already takes and edits all her photos, and does her marketing.) To her, it feels good to be a part of something. “I get a lot of messages, parents and teens and kids that tell me, like, ‘My daughter saw your photos, and her friends told her that she couldn’t copy that character because it’s not the same color as her, but now she’s excited to do it,” Jahara says. “People tell me that they feel more comfortable, they feel represented and they feel seen just by being able to see my face in the space. It wasn’t something that I expected when I set out for it. But it’s something that definitely keeps me going every day.” It’s networks like that one that have helped organize and provide a modicum of power to creators who are learning as they go. Longtime adult performer Alana Evans, 45, has an inside view of how this works; as president of the Adult Performance Artists Guild, she has helped hundreds of performers navigate issues with tech platforms including Instagram, Tiktok, and, of course, OnlyFans. “I was seeing hundreds of performers lose their pages, for very obscure reasons; you would be given an email that had vague reasons as to why maybe you were deleted, and they were absorbing all of their money,” she says. She and her organization have been able to help many rehabilitate their accounts. But these days she preaches the gospel of diversification, and of making sure that performers do their due diligence about who owns and profits from the platforms they share on. Beyond that, Evans has her sights set on the big picture: working through legal avenues to classify anti-sex-work restrictions, like those set by payment companies, as “occupational discrimination.” It’s only once they deal with the banking side of things, Evans explains, that online sex workers will be able to participate in the creator economy fully and safely. Read More: U.S. Workers Are Realizing It’s the Perfect Time to Go on Strike Creators in the music industry are trying to find power by banding together, too. By day, David Turner, 29, is a program manager at the music streaming service SoundCloud. By night, he publishes a weekly newsletter, called Penny Fractions, that goes into the nitty-gritty of the streaming industry; it’s been his pet project for over four years now. After publishing with Patreon for a few years, Turner realized only a small segment of the most popular creators were truly generating the income the platform touted. “They don’t care about me,” he says over the phone from Brooklyn. Now, Turner hosts his newsletter on an independent service and serves on the board of Ampled, a music services co-op whose tagline is “Own Your Creative Freedom.” Collectivization, as Turner sees it, is the safest way for this next generation to protect themselves from the predations of the market. Other decentralized social platforms like Mastodon and Diaspora, music streaming services like Corite and Resonate and sex-worker-backed sites like PocketStars have popped up to provide alternatives to the more mainstream options. Their selling point: bigger payouts to creators, and opportunities for creators to invest in the platforms themselves. But mass adoption has been slow. If the calling card of the independent platform is their bottom-up approach, that is also their limiting factor. By nature, they are scrappier, less funded and less likely to be able to reach the wide audiences that the top user-friendly sites have already monopolized. Annie Flanagan for TIMESavannah dresses up in Star Wars cosplay as Padmé. The future for creators When OnlyFans made its policy change in August, collectivization is what got sex workers through. Alana Evans helped lead the charge. To Evans, who has been in the industry for decades, it was just the latest iteration of exploitation from more powerful overlords. She saw her community speaking up against the change—particularly on Twitter, where sex workers and performers quickly renounced the policy and began proactively publicizing their accounts on other, friendlier platforms. To her surprise, their vocal opposition worked and OnlyFans moved quickly to find a solution. But Evans knows that this latest golden era of online work is already ending. “The writing is on the wall,” she says. Even successful creators like Savannah have begun actively promoting accounts on alternate platforms like PocketStars and Fansly. They know no solution, and no single site, will be forever. “The advice I’ve been given is to expect it all to crumble, and to have to rebuild again,” Savannah says. That advice isn’t specific to OnlyFans; it’s echoed by Amanda Palmer about Patreon, and Jahara about Twitch. As platforms inevitably seek a better bottom line, the creator workforce has no choice but to trust the tech companies will do right by them. In the meantime, they’re taking a note from the labor movement that has risen up in other industries this year: solidarity works......»»

Category: topSource: timeDec 1st, 2021

UBER Teams Up With Hims & Hers to Deliver Personal Care Products

UBER expands its delivery network, partnering with Hims & Hers to offer on-demand delivery of personal wellness products to customers across the United States. Uber Technologies UBER has partnered with Hims & Hers Health HIMS, a telehealth company offering medical care and personal wellness-related products and services, for on-demand delivery services.As part of the agreement, Uber customers in Los Angeles, San Francisco, CA; Sacramento, CA; Miami, FL; Houston, TX; Austin, TX; Dallas, TX; San Antonio, TX; Philadelphia, PA; Seattle, WA; Atlanta, GA; and Phoenix, AZ can have access to a wide variety of products offered by Hims & Hers through the Uber Eats app. The service is expected to expand to other places later.Melissa Baird, chief operating officer of Hims & Hers, said, "We have found that adding in the on-demand factor to Hims & Hers products is a game-changer for many consumers."Uber Technologies, Inc. Price Uber Technologies, Inc. price | Uber Technologies, Inc. QuoteUber customers can also order Hims & Hers products online through the Postmates app. Uber acquired the food delivery company last year for $2.65 billion.Beryl Sanders, head of U.S. Uber Eats Partnerships, said, "We’re always focused on making sure our customers can get anything - and personal wellness is no exception."With Uber’s delivery operations booming amid the pandemic, the company’s efforts to expand its delivery network are encouraging. Earlier this month, the company partnered with Serve Robotics, a company offering autonomous delivery services, to offer on-demand robotic delivery service through Uber Eats. The service will begin early next year in Los Angeles. Regarding the partnership, Sarfraz Maredia, VP and head of Uber Eats in the US & Canada, said that the company is looking forward to “test a new kind of delivery in Los Angeles, that's safe, reliable and environmentally friendly”.Both Uber and Hims & Hers carry a Zacks Rank #3 (Hold).Key PicksHere are some better-ranked stocks in the Internet - Services industry:Alphabet GOOGL sports a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history having trumped the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 41.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Alphabet have rallied more than 62% in a year’s time.Dropbox DBX carries a Zacks Rank #2 (Buy). The company’s earnings have outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.3%.Shares of Dropbox have gained more than 23% in a year’s time. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Dropbox, Inc. (DBX): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

The 120+ best Cyber Monday deals to shop right now

We're updating the best 2021 Cyber Monday deals in real-time. Save on AirPods, Amazon Echo, Breville Espresso Machines, and more. Prices are accurate at the time of publication.When you buy through our links, Insider may earn an affiliate commission. Learn more.Kohl's; Sardel; Amazon; Apple; Nike; Alyssa Powell/InsiderCyber Monday deals are here! You can score serious savings on electronics, fitness equipment, kitchen appliances, and beauty products — but you have to grab them fast before supplies run out.We're here to help: Our full-time editors and reporters spend the year researching and personally testing hundreds of products in their areas of expertise and consult with industry professionals on what products are truly worth your money. (Read more about why you can trust us here.)And for Cyber Monday, we continually monitor what top products are going on sale and what stock is still available. That way, you don't have to waste your time with "sold outs." Below, we've gathered the best deals on products we stand behind that you can still purchase for less than normal.We'll be updating this page with the best Cyber Monday discounts and lightning deals so you don't have to scroll through pages of sales to find the true hidden gems. Check back frequently for the freshest Cyber Monday deals across all major retailers like Best Buy, Amazon, Target, Walmart, and more.The best Cyber Monday shopping deals right now25% off Dyson's TP01 Pure Cool Tower Air Purifier and FanAmazonDyson Pure Cool TP01 Air Purifier + Fan with HEPA filterAn ultra-quiet, state-of-the-art fan with a built-in air purifier, Dyson's TP01 is great for stuffy spaces and crowded indoor get-togethers.$299.99 FROM TARGETOriginally $399.99 | Save 25%$299.00 FROM THE HOME DEPOTOriginally $399.00 | Save 25%$299.99 FROM DYSONOriginally $399.99 | Save 25%Over 30% off iRobot RoombasAmazoniRobot Roomba 694This robot vacuum can be automated to work around your home schedule, and also works with virtual assistants like Alexa and Google Home. It's not the most powerful Roomba, but it can handle hardwood floors, pet hair and short carpets without issue.$179.00 FROM AMAZONOriginally $274.00 | Save 35%$179.99 FROM BEST BUYOriginally $274.99 | Save 35%iRobot Roomba 675 Robot VacuumDuring Cyber Monday, several retailers dropped the iRobot Roomba 675 robot vacuum to a low $179 and this deal is still live. This is the lowest price we’ve seen this year and a solid discount from its usual going rate of $250.$179.00 FROM AMAZONOriginally $279.99 | Save 36%$179.99 FROM BEST BUYOriginally $274.99 | Save 35%$199.99 FROM IROBOTOriginally $249.99 | Save 20%$174.99 FROM TARGETOriginally $279.99 | Save 38%28% off LG C1 OLED 4K TVsBest BuyLG 65-inch C1 OLED 4K TVLG’s C1 is one of the best 4K TVs you can buy. The OLED panel delivers incredible image quality with an infinite contrast ratio. This deal price matches the lowest we’ve seen so far.$1796.99 FROM AMAZONOriginally $2499.98 | Save 28%$1796.99 FROM WALMARTOriginally $2499.98 | Save 28%LG 77-inch C1 OLED TVLG’s C1 is one of the best 4K TVs you can buy. The OLED panel delivers incredible image quality with an infinite contrast ratio. $2896.99 FROM WALMARTOriginally $3999.99 | Save 28%$500 off the Hydrow rowing machineHydrowHydrow Connected RowerThe Hydrow Connected Rower is the Peloton of at-home rowing machines, bringing interactive rowing workouts right to your living room.$1795.00 FROM HYDROWOriginally $2295.00 | Save 22%$1794.99 FROM BEST BUYOriginally $2244.98 | Save 20%$1794.99 FROM AMAZONOver 60% off a Serta memory foam mattress topperKohl'sSerta 3-inch Soothing Cool Gel Memory Foam Mattress TopperIf you tend to feel hot during the night, this cooling gel mattress topper provides supreme comfort and cool feeling. $147.19 FROM KOHL'SOriginally $459.99 | Save 68%Over 30% off Allbirds Wool Runners and Runner-upsAllbirdsAllbirds Men's Wool Runners Cyber Monday$66.00 FROM ALLBIRDSOriginally $98.00 | Save 33%Allbirds Women's Wool Runners Cyber Monday$66.00 FROM ALLBIRDSOriginally $98.00 | Save 33%Allbirds Men's Tree Runners Cyber Monday$66.00 FROM ALLBIRDSOriginally $98.00 | Save 33%Allbirds Women's Tree Runners Cyber Monday$66.00 FROM ALLBIRDSOriginally $98.00 | Save 33%Allbirds Men's Wool Runner-up Mizzles Cyber Monday$102.00 FROM ALLBIRDSOriginally $135.00 | Save 24%Allbirds Women's Wool Runner-up Mizzles Cyber Monday$91.00 FROM ALLBIRDSOriginally $135.00 | Save 33%Over 10% off a dumbbell setTargetHolaHatha Dumbbell Set (5, 10, and 15-pound)TK$129.99 FROM TARGETOriginally $158.99 | Save 18%60% off a Samsonite's Hardside Spinner luggageKohl'sSamsonite Ziplite 5 Hardside Spinner LuggageThis Samsonite hardside luggage features dual spinner wheels, cushioned handle, TSA approved locks. The carry-on size includes a USB port as well. $135.99 FROM KOHL'SOriginally $399.99 | Save 66%25% off a Graco 4Ever Convertible Car SeatWalmartGraco 4Ever DLX 4 in 1 Car SeatThe Graco 4Ever DLX car seat transforms from a rear-facing car seat to a front-facing car seat to a booster seat, growing with your child until they hit 120 pounds$209.99 FROM AMAZONOriginally $299.99 | Save 30%$209.99 FROM WALMARTOriginally $299.99 | Save 30%Over 40% off an Amazon KindleAmazon25% off Hypervolt's low-volume massage gunNordstromHyperice Hypervolt PlusThis upgrade to our pick for the best low volume massage gun, is currently $100 off at Best Buy. It's more powerful than the model we recommend. $299.99 FROM BEST BUYOriginally $399.99 | Save 25%$299.00 FROM NORDSTROMOriginally $399.00 | Save 25%Up to 40% off Nike sneakersNikeNike Adapt Auto MaxThe Nike Adapt Auto Max uses advanced technology to automatically form to your foot without laces.$288.97 FROM NIKEOriginally $400.00 | Save 28%Nike SuperRep Go 2Designed for training, the SuperRep Go 2 provides stability and comfort.$66.77 FROM NIKEOriginally $100.00 | Save 33%Nike Space Hippie 01The Nike Space Hippie 01 is made from 50% recycled materials and features a lightweight, track-inspired look.$77.56 FROM NIKEOriginally $130.00 | Save 40%Over 30% off a non-stick fry pan setNordstromAll-Clad 8-Inch & 10-Inch Hard Anodized Aluminum Nonstick Fry Pan SetThis set of two All-Clad nonstick frying pans is made with a PFOA-free nonstick coating and stainless steel base to prevent difficult cleaning and uneven cooking temperatures. The set comes with an 8-inch and 10-inch frying to use on a stove or oven up to 500 degrees. Right now, you can get the All-Clad set of two nonstick frying pans for $60 during Nordstrom’s Anniversary Sale.$55.99 FROM NORDSTROMOriginally $90.00 | Save 38%20% off a 5-in-1 Ninja indoor grill and air fryerTargetNinja Foodi 5-in-1 Indoor Grill with Air Fryer, Roast, Bake & DehydrateThe Ninja Foodi 5-in-1 has five functions, including grill, bake, and dehydrate. Its temperatures range between 105°F to 500°F, giving it a lot of versatility in cooking options. Many of the parts are dishwasher safe for easier cleanup. $169.99 FROM KOHL'SOriginally $249.99 | Save 32%$169.99 FROM TARGETOriginally $229.99 | Save 26%20% off all-in-one gym system Tempo StudioTempoTempo StudioThe Tempo Studio is a comprehensive at-home fitness solution with quality equipment and effective streamable workouts.$1995.00 FROM TEMPOOriginally $2495.00 | Save 20%20% off our favorite coffee makerCafeCafé Specialty Drip Coffee MakerWhat makes this coffee maker the best I tested is its combination of simplicity and customizability. It’s also extremely consistent — every cup of coffee brewed at every setting tasted just like it should. $279.95 FROM WILLIAMS SONOMAOriginally $349.95 | Save 20%$279.00 FROM BEST BUYOriginally $349.99 | Save 20%Up to 50% off Kiehl'sKiehl'sKiehl's Powerful-Strength Vitamin C SerumThis serum by Kiehl’s boasts its ability to reduce fine lines, and customers agree—one even called it “botox in a bottle.”$44.00 FROM KIEHL'SOriginally $88.00 | Save 50%$70.00 FROM SEPHORA$20 off our favorite RENPHO foot massagerRENPHORENPHO Foot Massager MachineWith customizable patterns of kneading, compression, and heat therapy, the RENPHO Foot Massager Machine is a full-service Shiatsu device and feels like a home spa for your feet.$129.99 FROM AMAZONOriginally $149.99 | Save 13%40% off Philips Sonicare electric toothbrushesPhilipsPhilips Sonicare ProtectiveClean 4100Sonicare has long been a leader in the electric toothbrush industry, and as such, it offers many electric toothbrush options.$29.99 FROM TARGETOriginally $49.99 | Save 40%Philips Sonicare 9900 PrestigeDentists love Philips Sonicare and its new 9900 Prestige has every bell and whistle you could want in an electric toothbrush, including the ability to adjust its vibrations based on how hard you're brushing.$299.99 FROM AMAZONOriginally $349.99 | Save 14%$299.95 FROM PHILLIPS SONICAREOriginally $349.99 | Save 14%25%+ off Garmin smartwatchesGarminGarmin Forerunner 245 MusicThe Garmin Forerunner 245 is a great choice for runners and offers features like calendar syncing, weather forecasting, and notifications, so you can leave your phone at home. $249.99 FROM TARGETOriginally $349.99 | Save 29%$249.99 FROM GARMINOriginally $349.99 | Save 29%Garmin Fenix 6SThe Garmin Fenix 6S Sapphire smartwatch is a premium watch perfect for those looking for enhanced GPS capabilities in a rugged design. The Fenix 6S features an always-on display, stainless steel bezels, an enhanced pulse oximeter for sleep monitoring and altitude acclimation, grade-adjusted pace guidance, and comes preloaded with maps, as well as the ability to tap into three different navigation satellite systems. $549.99 FROM AMAZONOriginally $749.99 | Save 27%14% off Breville Barista ExpressHollis Johnson/InsiderBreville Barista ExpressBreville's Barista Express, the predecessor to the newest Barista Pro, is a 9.5-pound machine that quickly and reliably makes great-tasting espresso every time. During this sale, this espresso machine drops to one of the lowest prices we've ever seen.$599.99 FROM AMAZONOriginally $699.99 | Save 14%$599.99 FROM BED BATH & BEYONDOriginally $699.99 | Save 14%$699.95 FROM BREVILLE$599.95 FROM WAYFAIROriginally $699.95 | Save 14%25% off luxe Eberjey pajamasEberjeyEberjey Gisele Long Sleeve PJ SetThe Eberjey Gisele Long Sleeve PJ Set is made with a lightweight modal jersey fabric that feels like a second skin. $86.25 FROM EBERJEYOriginally $115.00 | Save 25%$115.00 FROM AMAZON$80.50 FROM SHOPBOPOriginally $115.00 | Save 30%Eberjey Naya Modal GownThis classic nightgown is soft to the skin with women-owned Eberjey's signature Tencel fabric.$84.00 FROM EBERJEYOriginally $112.00 | Save 25%17% off the Hexclad 8-inch PanHexcladHexclad 8-inch PanThis pan is absolutely indestructible, far as we're concerned, and the tri-ply stainless steel and aluminum is as nonstick as nonstick gets without incorporating all sorts of nasty chemicals. Dishwasher- and metal utensil-safe, we might go so far as to suggest making all of your cookware Hexclad if you don't already have it. - Owen Burke$89.99 FROM HEXCLADOriginally $108.00 | Save 17%20% off the Flair Espresso MakerOwen Burke/Insider25% off the Outdoor Voices Exercise DressOutdoor VoicesOutdoorVoices The Exercise DressOutdoorVoices makes a few of our favorite athleisure items, and they're another example of a company that can balance form and function. It's also on the Insider Reviews 100 All Time Best products list.$75.00 FROM OUTDOORVOICESOriginally $100.00 | Save 25%15% off the Roku UltraTargetRoku Ultra 2020If you're looking for every major streaming service under the sun, along with support for 4K HDR, Dolby Vision, and Dolby Atmos thrown in, then the Roku Ultra is for you. It's also on the Insider Reviews 100 All Time Best products list.$99.99 FROM BEST BUY$85.39 FROM AMAZONOriginally $99.99 | Save 15%$85.39 FROM WALMARTOriginally $99.00 | Save 14%13% off the Apple Watch Series 6AmazonApple Watch Series 6 (40mm, GPS)The Apple Watch Series 6 is the best smartwatch Apple currently sells. It comes with top-of-the-line health features, a brighter always on display, and fast charging.$299.00 FROM WALMARTOriginally $399.00 | Save 25%$299.00 FROM AMAZONOriginally $399.00 | Save 25%40% off a Kasa Smart Dimmer Switch PackAmazonKasa Smart Dimmer Switch HS220P3 (3-Pack)This smart assistant-compatible dimmer switch gives you precise control over your lights with just the touch of a button or your voice. We often see a three-pack go for $50, making this $45 drop a rare low.$44.99 FROM AMAZONOriginally $74.98 | Save 40%29% off the Amazon Fire TV 50" Omni SeriesAmazonAmazon Fire TV 50" Omni SeriesAmazon launched its own smart TVs in fall 2021 and the Omni Series boasts features like hands-free Alexa support and video calling along with the latest Fire TV software.$359.99 FROM AMAZONOriginally $509.99 | Save 29%21% off Call of Duty: Vanguard for PlayStation 5TargetCall of Duty Vanguard for PlayStation 5The latest Call of Duty game is now on sale for PlayStation 5 just a few weeks after its release.$54.99 FROM TARGETOriginally $69.98 | Save 21%$39.00 FROM WALMARTOriginally $59.94 | Save 35%17% off the Vitamix E310 Explorian BlenderWilliams SonomaVitamix E310 BlenderThis pared down Vitamix has 10 variable speeds and a 48-ounce pitcher.$246.46 FROM AMAZONOriginally $349.95 | Save 30%50% off the Urban Decay Naked3 Eyeshadow PaletteSephoraUrban Decay Naked3 Eyeshadow PaletteAn endlessly versatile eyeshadow palette featuring 12 rosy neutral shades in both matte and shimmer finishes. $27.00 FROM SEPHORAOriginally $54.00 | Save 50%$54.00 FROM ULTA33% off an annual Playstation Plus subscriptionAmazon15% off the Bose QuietComfort 45BoseBose QuietComfort 45The QuietComfort 45 have a refreshed design with improved noise cancelling and better battery life.$279.00 FROM BOSEOriginally $329.00 | Save 15%$279.00 FROM BEST BUYOriginally $329.00 | Save 15%$279.00 FROM AMAZONOriginally $329.00 | Save 15%$279.00 FROM WALMARTOriginally $329.00 | Save 15%25% off the Fenty Beauty Pro Filt'r Soft Matte Longwear FoundationSephora69% off the Book of the Month membershipBook of the Month; Alyssa Powell/InsiderBook of the Month MembershipBook of the Month Club curates five interesting and trending hardcover books every month. Use the code "BOXEDUP" to get your first month for $5. It'll be $15.99 per month after. $5.00 FROM BOOK OF THE MONTHOriginally $15.99 | Save 69%25% off Bioderma Sensibio H2O Micellar WaterBioderma20% off the Brooklinen Weighted ComforterJen Gushue/InsiderBrooklinen Weighted Comforter (15 lb)Brooklinen's Weighted Comforter has a premium plush design that blends seamlessly with the rest of your bedding.$199.20 FROM BROOKLINENOriginally $249.00 | Save 20%5% off the OXO Brew Conical Burr Coffee GrinderAmazon30% off the Foreo Luna 2AmazonForeo Luna 3The Luna 3 is the second generation model of Luna Foreo facial cleansers. It’s reportedly bigger and more effective than its predecessor thanks to upgrades like longer touchpoints and 50% more power. This particular silicone pattern is the standard version recommended for “normal skin” — meaning you’re neither combination nor oily nor sensitive.$139.30 FROM FOREOOriginally $169.00 | Save 18%29% off the Bose QuietComfort EarbudsTony Villas Boas/Business InsiderBose QuietComfort EarbudsThe Bose QuietComfort Earbuds are the best overall wireless noise cancelling earbuds you can buy with good sound and stellar noise cancellation.$199.00 FROM AMAZONOriginally $279.00 | Save 29%$199.00 FROM BEST BUYOriginally $279.00 | Save 29%$199.00 FROM BOSEOriginally $279.00 | Save 29%$199.00 FROM WALMARTOriginally $279.00 | Save 29%40% off the Bose QuietComfort 35 IIBest BuySave up to 50% on KitchenAid countertop appliancesOwen Burke/InsiderKitchenAid K150If all you're making is the odd smoothie, the Kitchenaid K150's timeless design will more than suffice.$74.98 FROM KITCHENAIDOriginally $99.99 | Save 25%KitchenAid Professional 5 Plus Series 5-Quart Bowl-Lift Stand MixerThis KitchenAid is a powerful mixer that can handle sticky doughs and a few quarts of cake batter, but isn't too bulky for a home kitchen. It comes in eight colors, and each includes a flat beater, a spiral dough hook, and a wire whisk. $249.99 FROM TARGETOriginally $429.99 | Save 42%Save 20% on Glerups slippersBackcountryGlerups The Slip-On Rubber SlipperA simple, classic, breathable design with 100% wool that slowly molds to your feet.$107.96 FROM BACKCOUNTRYOriginally $134.94 | Save 20%Up to 25% off Nespresso Vertuo espresso machinesAmazonNespresso Vertuo Next Espresso MakerThe Wi-Fi-enabled Vertuo Next is a compact Nespresso machine that heats up in 30 seconds and is compatible with Vertuo capsules.$164.96 FROM AMAZONOriginally $209.95 | Save 21%Save up to 57% on LifeStraw filtersAmazonLifeStraw Personal Water Filter (2-Pack)LifeStraw's Personal Water Filter is a portable filter that cleanses water of bacteria and parasites to make it safe to drink. For backpackers and hikers, a LifeStraw can be an invaluable tool in dire situations and is a great addition to any emergency kit.$22.99 FROM AMAZONOriginally $39.95 | Save 42%Save up to 44% on Blink Home Security SystemsAmazonAmazon Blink OutdoorAmazon's Blink Outdoor is a wireless, outdoor security camera that's able to run for up to two years on just two AA batteries, allows you to monitor activity outside your home, and is capable of standing up to wind, rain, sleet, or snow. $99.99 FROM AMAZONOriginally $179.99 | Save 44%Save up to 58% on Amazon devicesAmazonRing Video Doorbell and Echo Dot bundleThe Ring Doorbell with Echo Dot bundle brings two of the most innovative and ubiquitous gadgets on the market together. You can monitor who comes to your door with the Ring and interact with them using the echo.$41.99 FROM AMAZONOriginally $99.98 | Save 58%Amazon Fire HD 10The latest Amazon Fire HD 10 (2019) is super affordable, but it still delivers a good set of features that you'll enjoy using for watching videos and running simple apps.$74.98 FROM AMAZONOriginally $149.99 | Save 50%Save $50 on Beats Studio BudsThe Beats Studio Buds support hands free Siri, but other voice assistants require touch controlsLisa Eadicicco/InsiderBeats Studio BudsThe Beats Studio Buds offer great sound, an excellent fit, and decent noise cancellation for $150. They support instant pairing for both iPhone and Android users, but the iPhone experience is still more seamless.$99.99 FROM BEST BUYOriginally $149.99 | Save 33%$99.95 FROM AMAZONOriginally $149.94 | Save 33%$149.99 FROM APPLE$99.99 FROM TARGETOriginally $149.99 | Save 33%$99.95 FROM WALMARTOriginally $149.94 | Save 33%Up to 40% off Instant PotsJen Gushue/InsiderInstant Pot Duo Crisp Pressure Cooker with Air Fryer (8 Qt)The Instant Pot Duo Crisp is a pressure cooker, slow cooker, air fryer, and sous vide machine all in one, making it one of the most useful and economical small appliances we tested.$119.95 FROM AMAZONOriginally $199.99 | Save 40%$119.99 FROM TARGETOriginally $199.99 | Save 40%$119.95 FROM INSTANTOriginally $199.99 | Save 40%Instant Pot Duo Crisp Pressure Cooker with Air Fryer (6 Qt)The smaller-capacity version of the Duo Crisp, this Instant Pot adds air frying and sous vide tech to its already packed resume of cooking options. This pressure cooker, typically selling between $150 and $180, has dropped to $79 during Walmart's Cyber Monday sale — the lowest price we've ever seen on this model.$119.00 FROM WALMARTOriginally $149.99 | Save 21%$110.49 FROM AMAZONOriginally $149.00 | Save 26%Instant Pot Duo Plus Pressure Cooker BundleThis bundle is a Target exclusive, and it includes an extra silicone egg rack and stainless steel steam rack for your pressure cooking needs. It’s only $60 right now — an excellent value for such a multifunctional kitchen appliance.$50.99 FROM TARGETOriginally $129.99 | Save 61%40% off the Oral-B Pro 1000 CrossAction Electric ToothbrushAmazonOral-B Pro 1000 CrossAction Electric ToothbrushWe love this electric toothbrush as a budget-friendly option that doesn't compromise on performance. It's also the path of least resistance to helping your teen build their own healthy habits.$29.97 FROM AMAZONOriginally $49.94 | Save 40%$300 off Lifespan Folding TreadmillLifeSpanLifeSpan TR1200i Folding TreadmillThe TR1200i is the baby sister of our top pick for a folding treadmill, the TR300i, with fewer built-in training programs and fewer fancy features like manual instead of digital buttons. But it's nearly the same size, has the same motor, and the same shock absorption — but for significantly cheaper.$899.00 FROM LIFESPANOriginally $1199.00 | Save 25%$100 off Fitbit SenseFitbitFitbit SenseThe Sense smartwatch has a ton of added features, focusing on heart health and stress management, giving you a more holistic look at your well-being. $199.00 FROM AMAZONOriginally $299.95 | Save 34%$199.95 FROM BEST BUYOriginally $299.95 | Save 33%$199.95 FROM FITBITOriginally $299.95 | Save 33%60% off Everlane Glove Boot ReKnitEverlaneEverlane Glove Boot ReKnitEverlane's Glove Boot is a sleek boot made with stretchy, sustainable knit fabric and a walkable heel for all-day comfort. $46.00 FROM EVERLANEOriginally $115.00 | Save 60%42% off Revlon One-Step Hair Dryer and VolumizerElana Rubin/INSIDERRevlon One-Step Hair Dryer and VolumizerThe Revlon One-Step Hair Dryer and Volumizer is a hot air brush designed to give you volume and shine in a single step. Its oval brush barrel smooths hair while its rounded edges grab and curl your roots, leaving you with full, bouncy, and healthier-looking hair.$22.28 FROM AMAZONOriginally $59.99 | Save 63%$29.97 FROM WALMARTOriginally $59.99 | Save 50%$54.99 FROM TARGETOriginally $59.99 | Save 8%30% off the GoPro Hero 10Les Shu/InsiderGoPro Hero 10 BlackThis video and still camera has similar capabilities to larger variants, while maintaining the small go-anywhere form-factor it's known for.$349.98 FROM GOPROOriginally $499.99 | Save 30%41% off ECOVACS Deebot T8 Robot Vacuum CleanerJames Brains/InsiderEcovacs Deebot Ozmo T8 AIVI Robot VacuumThe  Ecovacs Deebot Ozmo Pro Mopping System thoroughly cleans floors as opposed to pushing a wet cloth around. When paired with the Ecovacs Deebot Ozmo T8 AIVI Robot Vacuum, the two make easy work of time-consuming chores.$499.99 FROM AMAZONOriginally $749.99 | Save 33%$799.99 FROM BEST BUY38% off the Roku Streambar 2020RokuRoku Streambar 2020Too much clutter under the TV? The interesting Roku Streambar combines all of the features of a Roku 4K player with a compact soundbar.$79.98 FROM AMAZONOriginally $129.99 | Save 38%$79.98 FROM BEST BUYOriginally $129.99 | Save 38%$79.98 FROM TARGETOriginally $129.99 | Save 38%$99.00 FROM WALMARTOriginally $129.99 | Save 24%28% off the Google Nest Learning ThermostatGoogleGoogle Nest ThermostatGoogle Nest makes some of the best smart thermostats you can buy. This model lets you control your home's temperature via the internet or through a mobile app. It can also learn your preferred temperature settings over time. $99.99 FROM TARGETOriginally $129.99 | Save 23%$89.99 FROM AMAZONOriginally $129.99 | Save 31%17% off the Theragun PrimeAmazonTheragun PrimeTheragun's Prime massage gun is the perfect blend of performance and value. It delivers a high-quality massage, is durably built, and features an ergonomic design that makes it easy to use anywhere on your body. It's also half the price of the flagship Pro model.$249.99 FROM THERABODYOriginally $299.00 | Save 16%$249.99 FROM KOHL'SOriginally $299.99 | Save 17%5% off the Apple Watch Series 7AmazonApple Watch Series 7Much more than a timepiece, the Apple Watch can also be used for keeping track of workouts, making phone calls, sending text messages, setting timers and alarms, counting calories, and more.$379.99 FROM AMAZONOriginally $399.00 | Save 5%$379.99 FROM WALMARTOriginally $399.00 | Save 5%$399.00 FROM APPLE36% off a pair of AirPods ProAmazonApple AirPods ProThe Apple AirPods Pro look and sound better than previous-generation AirPods. Plus, they have noise cancellation built right into them and integrate perfectly with other Apple devices. $179.00 FROM AMAZONOriginally $249.99 | Save 28%$189.99 FROM TARGETOriginally $249.99 | Save 24%$189.99 FROM BEST BUYOriginally $249.99 | Save 24%$159.00 FROM WALMARTOriginally $249.00 | Save 36%$209.00 FROM B&HOriginally $249.00 | Save 16%Up to 60% off Ancestry DNA kitsAncestry.comAncestryDNA DNA + TraitsThe AncestryDNA + Traits kit gives you all of the same information as you get from the above kit plus over 25 of your most interesting traits as determined by your genetics so you can learn about where your characteristics came from.$59.00 FROM AMAZONOriginally $119.00 | Save 50%10% off the Apple MacBook Air.....»»

Category: topSource: businessinsiderNov 29th, 2021

BTFDers Unleashed: Futures, Yields, Oil Jump As Omicron Panic Eases

BTFDers Unleashed: Futures, Yields, Oil Jump As Omicron Panic Eases As expected over the weekend, and as we first noted shortly after electronic markets reopened for trading on Sunday, S&P futures have maintained their overnight gains and have rebounded 0.7% while Nasdaq contracts jumped as much as 1.3% after risk sentiment stabilized following Friday’s carnage and as investors settled in for a few weeks of uncertainty on whether the Omicron variant would derail economic recoveries and the tightening plans of some central banks. Japan led declines in the Asian equity session (which was catching down to Friday's US losses) after the government shut borders to visitors. The region’s reopening stocks such as restaurants, department stores, train operators and travel shares also suffered some losses.  Oil prices bounced $3 a barrel to recoup some of Friday's rout, while the safe haven yen, Swiss franc and 10Y Treasury took a breather after its run higher. Moderna shares jumped as much as 12% in pre-market trading after Chief Medical Officer Paul Burton said he suspects the new omicron coronavirus variant may elude current vaccines, and if so, a reformulated shot could be available early in the new year. Which he would obviously say as his company makes money from making vaccines, even if they are not very efficient. Here are some of the other notable premarket movers today: BioNTech (BNTX US) advanced 5% after it said it’s starting with the first steps of developing a new adapted vaccine, according to statement sent by text. Merck & Co. (MRK US) declined 1.6% after it was downgraded to neutral from buy at Citi, which also opens a negative catalyst watch, with “high probability” the drugmaker will abandon development of its HIV treatment. A selection of small biotechs rise again in U.S. premarket trading amid discussion of the companies in StockTwits and after these names outperformed during Friday’s market rout. Palatin Tech (PTN US) +37%, Biofrontera (BFRI US) +22%, 180 Life Sciences (ATNF US) +19%. Bonds gave back some of their gains, with Treasury futures were down 11 ticks. Like other safe havens, the market had rallied sharply as investors priced in the risk of a slower start to rate hikes from the U.S. Federal Reserve, and less tightening by some other central banks. Needless to say, Omicron is all anyone can talk about: on one hand, authorities have already orchestrated a lot of global panic: Britain called an urgent meeting of G7 health ministers on Monday to discuss developments on the virus, even though the South African doctor who discovered the strain and treated cases said symptoms of Omicron were so far mild. The new variant of concern was found as far afield as Canada and Australia as more countries such as Japan imposed travel restriction to try to seal themselves off. Summarizing the fearmongering dynamic observed, overnight South African health experts - including those who discovered the Omicron variant, said it appears to cause mild symptoms, while the Chinese lapdog organization, WHO, said the variant’s risk is “extremely high”. Investors are trying to work out if the omicron flareup will a relatively brief scare that markets rebound from, or a bigger blow to the global economic recovery. Much remains unanswered about the new strain: South African scientists suggested it’s presenting with mild symptoms so far, though it appears to be more transmissible, but the World Health Organization warned it could fuel future surges of Covid-19 with severe consequences. "There is a lot we don't know about Omicron, but markets have been forced to reassess the global growth outlook until we know more," said Rodrigo Catril, a market strategist at NAB. "Pfizer expects to know within two weeks if Omicron is resistant to its current vaccine, others suggest it may take several weeks. Until then markets are likely to remain jittery." "Despite the irresistible pull of buying-the-dip on tenuous early information on omicron, we are just one negative omicron headline away from going back to where we started,” Jeffrey Halley, a senior market analyst at Oanda, wrote in a note. “Expect plenty of headline-driven whipsaw price action this week.” The emergence of the omicron strain is also complicating monetary policy. Traders have already pushed back the expected timing of a first 25-basis-point rate hike by the Federal Reserve to July from June. Fed Bank of Atlanta President Raphael Bostic played down economic risks from a new variant, saying he’s open to a quicker paring of asset purchases to curb inflation. Fed Chair Jerome Powell and Treasury Secretary Janet Yellen speak before Congress on Tuesday and Wednesday. “We know that central banks can quickly switch to dovish if they need to,” Mahjabeen Zaman, Citigroup senior investment specialist, said on Bloomberg Television. “The liquidity playbook that we have in play right now will continue to support the market.” European stocks rallied their worst drop in more than a year on Friday, with travel and energy stocks leading the advance. The Stoxx 600 rose 0.9% while FTSE 100 futures gain more than 1%, aided by a report that Reliance may bid for BT Group which jumped as much as 9.5% following a report that India’s Reliance Industries may offer to buy U.K. phone company, though it pared the gain after Reliance denied it’s considering a bid. European Central Bank President Christine Lagarde put a brave face on the latest virus scare, saying the euro zone was better equipped to face the economic impact of a new wave of COVID-19 infections or the Omicron variant Japanese shares lead Asian indexes lower after Premier Kishida announces entry ban of all new foreign visitors. Hong Kong’s benchmark Hang Seng Index closed down 0.9% at the lowest level since October 2020, led by Galaxy Entertainment and Meituan. The index followed regional peers lower amid worries about the new Covid variant Omicron. Amid the big movers, Galaxy Entertainment was down 5.4% after police arrested Macau’s junket king, while Meituan falls 7.1% after reporting earnings. In FX, currency markets are stabilizing as the week kicks off yet investors are betting on the possibility of further volatility. The South African rand climbed against the greenback though most emerging-market peers declined along with developing-nation stocks. Turkey’s lira slumped more than 2% after a report at the weekend that President Recep Tayyip Erdogan ordered a probe into foreign currency trades. The Swiss franc, euro and yen retreat while loonie and Aussie top G-10 leaderboard after WTI crude futures rally more than 4%. The Bloomberg Dollar Spot Index hovered after Friday’s drop, and the greenback traded mixed against its Group-of-10 peers; commodity currencies led gains. The euro slipped back below $1.13 and Bunds sold off, yet outperformed Treasuries. The pound was steady against the dollar and rallied against the euro. Australian sovereign bonds pared an opening jump as Treasuries trimmed Friday’s spike amid continuing uncertainty over the fallout from the omicron variant. The Aussie rallied with oil and iron ore. The yen erased an earlier decline as a government announcement on planned border closures starting Tuesday spurred a drop in local equities. The rand strengthens as South African health experts call omicron variant “mild.” In rates, Treasuries were cheaper by 4bp-7bp across the curve in belly-led losses, reversing a portion of Friday’s sharp safe-haven rally as potential economic impact of omicron coronavirus strain continues to be assessed. The Treasury curve bear- steepened and the benchmark 10-year Treasury yield jumped as much as 7 basis points to 1.54%; that unwound some of Friday’s 16 basis-point plunge -- the steepest since March 2020.  Focal points include month-end on Tuesday, November jobs report Friday, and Fed Chair Powell is scheduled to speak Monday afternoon. Treasuries broadly steady since yields gapped higher when Asia session began, leaving 10-year around 1.54%, cheaper by almost 7bp on the day; front-end outperformance steepens 2s10s by ~3bp. Long-end may draw support from potential for month-end buying; Bloomberg Treasury index rebalancing was projected to extend duration by 0.11yr as of Nov. 22 In commodities, oil prices bounced after suffering their largest one-day drop since April 2020 on Friday. "The move all but guarantees the OPEC+ alliance will suspend its scheduled increase for January at its meeting on 2 December," wrote analyst at ANZ in a note. "Such headwinds are the reason it's been only gradually raising output in recent months, despite demand rebounding strongly." Brent rebounded 3.9% to $75.57 a barrel, while U.S. crude rose 4.5% to $71.24. Gold has so far found little in the way of safe haven demand, leaving it stuck at $1,791 an ounce . SGX iron ore rises almost 8% to recoup Friday’s losses. Bitcoin rallied after falling below $54,000 on Friday. Looking at today's calendar, we get October pending home sales, and November Dallas Fed manufacturing activity. We also get a bunch of Fed speakers including Williams, Powell making remarks at the New York Fed innovation event, Fed’s Hassan moderating a panel and Fed’s Bowman discussing central bank and indigenous economies. Market Snapshot S&P 500 futures up 0.6% to 4,625.00 MXAP down 0.9% to 191.79 MXAPJ down 0.4% to 625.06 Nikkei down 1.6% to 28,283.92 Topix down 1.8% to 1,948.48 Hang Seng Index down 0.9% to 23,852.24 Shanghai Composite little changed at 3,562.70 Sensex up 0.4% to 57,307.46 Australia S&P/ASX 200 down 0.5% to 7,239.82 Kospi down 0.9% to 2,909.32 STOXX Europe 600 up 0.7% to 467.47 German 10Y yield little changed at -0.31% Euro down 0.3% to $1.1283 Brent Futures up 3.8% to $75.49/bbl Gold spot up 0.3% to $1,797.11 U.S. Dollar Index up 0.13% to 96.22 Top Overnight News from Bloomberg The omicron variant of Covid-19, first identified in South Africa, has been detected in locations from Australia to the U.K. and Canada, showing the difficulties of curtailing new strains While health experts in South Africa, where omicron was first detected, said it appeared to cause only mild symptoms, the Geneva-based WHO assessed the variant’s risk as “extremely high” and called on member states to test widely. Understanding the new strain will take several days or weeks, the agency said All travelers arriving in the U.K. starting at 4 a.m. on Nov. 30 must take a PCR coronavirus test on or before the second day of their stay and isolate until they receive a negative result. Face coverings will again be mandatory in shops and other indoor settings and on public transport. Booster shots may also be approved for more age groups within days, according to Health Secretary Sajid Javid The economic effects of the successive waves of the Covid pandemic have been less and less damaging, Bank of France Governor Francois Villeroy de Galhau says Italian bonds advance for a third day, as investors shrug off new coronavirus developments over the weekend and stock futures advance, while bunds are little changed ahead of German inflation numbers and a raft of ECB speakers including President Christine Lagarde A European Commission sentiment index fell to 117.5 in November from 118.6 the previous month, data released Monday showed Spanish inflation accelerated to the fastest in nearly three decades in November on rising food prices, underscoring the lingering consequences of supply-chain bottlenecks across Europe. Consumer prices jumped 5.6% Energy prices in Europe surged on Monday after weather forecasts showed colder temperatures for the next two weeks that will lift demand for heating ECB Executive Board member Isabel Schnabel took to the airwaves to reassure her fellow Germans that inflation will slow again, hours before data set to show the fastest pace of price increases since the early 1990s Russia’s ambassador to Washington said more than 50 diplomats and their family members will have to leave the U.S. by mid-2022, in the latest sign of tensions between the former Cold War enemies China sent the biggest sortie of warplanes toward Taiwan in more than seven weeks after a U.S. lawmaker defied a Chinese demand that she abandon a trip to the island A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks traded cautiously and US equity futures rebounded from Friday’s hefty selling (S&P 500 -2.3%) as all focus remained on the Omicron variant after several countries announced restrictions and their first cases of the new variant, although markets took solace from reports that all cases so far from South Africa have been mild. Furthermore, NIH Director Collins was optimistic that current vaccines are likely to protect against the Omicron variant but also noted it was too early to know the answers, while Goldman Sachs doesn’t think the new variant is a sufficient reason to adjust its portfolio citing comments from South Africa’s NICD that the mutation is unlikely to be more malicious and existing vaccines will most likely remain effective at preventing hospitalizations and deaths. ASX 200 (-0.5%) is subdued after Australia registered its first cases of the Omicron variant which involved two people that arrived in Sydney from southern Africa and with the government reviewing its border reopening plans. Nikkei 225 (-1.6%) whipsawed whereby it initially slumped at the open due to the virus fears and currency-related headwinds but then recouped its losses and briefly returned flat as the mood gradually improved, before succumbing to a bout of late selling, and with mixed Retail Sales data adding to the indecision. Hang Seng (-1.0%) and Shanghai Comp. (Unch) weakened with Meituan the worst performer in Hong Kong after posting a quarterly loss and with casino names pressured by a crackdown in which police detained Suncity Group CEO and others after admitting to accusations including illegal cross border gambling. However, the losses in the mainland were cushioned after firm Industrial Profits data over the weekend and with local press noting expectations for China to adopt a more proactive macro policy next year. Finally, 10yr JGBs shrugged off the pullback seen in T-note and Bund futures, with price action kept afloat amid the cautious mood in stocks and the BoJ’s presence in the market for over JPY 900bln of JGBs mostly concentrated in 3yr-10yr maturities. Top Asian News Hong Kong Stocks Slide to 13-Month Low on Fresh Virus Woes Li Auto Loss Narrows as EV Maker Rides Out Supply-Chain Snarls Singapore Adds to Its Gold Pile for the First Time in Decades China Growth Stocks Look Like Havens as Markets Confront Omicron Bourses in Europe are experiencing a mild broad-based rebound (Euro Stoxx 50 +1.0%; Stoxx 600 +0.9%) following Friday's hefty COVID-induced losses. Desks over the weekend have been framing Friday's losses as somewhat overstretched in holiday-thinned liquidity, given how little is known about the Omicron variant itself. The strain will likely remain the market theme as scientists and policymakers factor in this new variant, whilst data from this point forth – including Friday's US labour market report - will likely be passed off as somewhat stale, and headline risk will likely be abundant. Thus far, symptoms from Omicron are seemingly milder than some of its predecessors, although governments and central banks will likely continue to express caution in this period of uncertainty. Back to price action, the momentum of the rebound has lost steam; US equity futures have also been drifting lower since the European cash open – with the RTY (+0.9%) was the laggard in early European trade vs the ES (+0.8%), NQ (+1.0%) and YM (+0.7%). European cash bourses have also been waning off best levels but remain in positive territory. Sectors are mostly in the green, but the breadth of the market has narrowed since the cash open. Travel & Leisure retains the top spot in what seems to be more a reversal of Friday's exaggerated underperformance as opposed to a fundamentally driven rebound – with more nations announcing travel restrictions to stem the spread of the variant. Oil & Gas has also trimmed some of Friday's losses as oil prices see a modest rebound relative to Friday's slump. On the other end of the spectrum, Healthcare sees mild losses as COVID-related names take a mild breather, although Moderna (+9.1% pre-market) gains ahead of the US open after its Chief Medical Officer suggested a new vaccine for the variant could be ready early next year. Meanwhile, Autos & Parts reside as the current laggard amid several bearish updates, including a Y/Y drop in German car exports - due to the chip shortage and supply bottlenecks – factors which the Daimler Truck CEO suggested will lead to billions of Euros in losses. Furthermore, auto supbt.aplier provider Faurecia (-5.9%) trades at the foot of the Stoxx 600 after slashing guidance – again a function of the chip shortage. In terms of Monday M&A, BT (+4.7%) shares opened higher by almost 10% following source reports in Indian press suggesting Reliance Industries is gearing up for a takeover approach of BT – reports that were subsequently rebuffed. Top European News U.K. Mortgage Approvals Fall to 67,199 in Oct. Vs. Est. 70,000 Johnson Matthey Rises on Report of Battery Talks With Tata Gazprom Reports Record Third-Quarter Profit Amid Gas Surge Omicron’s Spread Fuels Search for Answers as WHO Sounds Warning In FX, the Buck has bounced from Friday’s pullback lows on a mixture of short covering, consolidation and a somewhat more hopeful prognosis of SA’s new coronavirus strand compared to very early perceptions prompted by reports that the latest mutation would be even worse than the Delta variant. In DXY terms, a base above 96.000 is forming within a 93.366-144 band amidst a rebound in US Treasury yields and re-steepening along the curve following comments from Fed’s Bostic indicating a willingness to back faster QE tapering. Ahead, pending home sales and Dallas Fed business manufacturing along with more Fed rhetoric from Williams and chair Powell on the eve of month end. AUD/CAD/NZD - No surprise to see the high beta and risk sensitive currencies take advantage of the somewhat calmer conditions plus a recovery in crude and other commodities that were decimated by the prospect of depressed demand due to the aforementioned Omicron outbreak. The Aussie is back over 0.7150 vs its US counterpart, the Loonie has pared back losses from sub-1.2750 with assistance from WTI’s recovery to top Usd 72/brl vs a Usd 67.40 trough on November 26 and the Kiwi is hovering above 0.6800 even though RBNZ chief economist Ha has warned that a pause in OCR tightening could occur if the fresh COVID-19 wave proves to be a ‘game-changer’. JPY/EUR - The major laggards as sentiment stabilses, with the Yen midway between 112.99-113.88 parameters and hardly helped by mixed Japanese retail sales data, while the Euro has retreated below 1.1300 where 1.7 bn option expiry interest resides and a key Fib level just under the round number irrespective of strong German state inflation reports and encouraging pan Eurozone sentiment indicators, as more nations batten down the hatches to stem the spread of SA’s virus that has shown up in parts of the bloc. GBP/CHF - Both narrowly divergent vs the Dollar, as Cable retains 1.3300+ status against the backdrop of retreating Gilt and Short Sterling futures even though UK consumer credit, mortgage lending and approvals are rather conflicting, while the Franc pivots 0.9250 and meanders from 1.0426 to 1.0453 against the Euro after the latest weekly update on Swiss bank sight deposits showing no sign of official intervention. However, Usd/Chf may veer towards 1.1 bn option expiries at the 0.9275 strike if risk appetite continues to improve ahead of KoF on Tuesday and monthly reserves data. SCANDI/EM - Although Brent has bounced to the benefit of the Nok, Sek outperformance has ensued in wake of an upgrade to final Swedish Q3 GDP, while the Cnh and Cny are deriving support via a rise in Chinese industrial profits on a y/y basis and the Zar is breathing a sigh of relief on the aforementioned ‘better’ virus updates/assessments from SA on balance. Conversely, the Try is back under pressure post-a deterioration in Turkish economic sentiment vs smaller trade deficit as investors look forward to CPI at the end of the week. Meanwhile, Turkish President Erdogan provides no reprieve for the Lira as he once again defending his unorthodox view that higher interest rates lead to higher inflation. In commodities, WTI and Brent front-month futures consolidate following an overnight rebound – with WTI Jan back on a USD 71/bbl handle and Brent Feb just under USD 75/bbl – albeit still some way off from Friday's best levels which saw the former's high above USD 78/bbl and the latter's best north of USD 81/bbl. The week is packed with risks to the oil complex, including the resumption of Iranian nuclear talks (slated at 13:00GMT/08:00EST today) and the OPEC+ monthly confab. In terms of the former, little is expected in terms of progress unless the US agrees to adhere to Tehran's demand – which at this point seems unlikely. Tehran continues to seek the removal of US sanctions alongside assurances that the US will not withdraw from the deal. "The assertion that the US must 'change its approach if it wants progress' sets a challenging tone", Citi's analysts said, and the bank also expects parties to demand full access to Iranian nuclear facilities for verification of compliance. Further, the IAEA Chief met with Iranian officials last week; although concrete progress was sparse, the overall tone of the meeting was one of progress. "We remain of the opinion that additional Iranian supplies are unlikely to reach the market before the second half of 2022 at the earliest," Citi said. Meanwhile, reports suggested the US and allies have been debating a "Plan B" if talks were to collapse. NBC News – citing European diplomats, former US officials and experts – suggested that options included: 1) a skinny nuclear deal, 2) ramp up sanctions, 3) Launching operations to sabotage Iranian nuclear advances, 4) Military strikes, 5) persuading China to halt Iranian oil imports, albeit Iran and China recently signed a 25yr deal. Over to OPEC+, a rescheduling (in light of the Omicron variant) sees the OPEC and JTC meeting now on the 1st December, followed by the JMMC and OPEC+ on the 2nd. Sources on Friday suggested that members are leaning towards a pause in the planned monthly output, although Russian Deputy PM Novak hit the wires today and suggested there is no need for urgent measures in the oil market. Markets will likely be tested, and expectations massaged with several sources heading into the meeting later this week. Elsewhere, spot gold trades sideways just under the USD 1,800/oz and above a cluster of DMAs, including the 50 (1,790.60/oz), 200 (1,791.30/oz) and 100 (1,792.80/oz) awaiting the next catalyst. Over to base metals, LME copper recoups some of Friday's lost ground, with traders also citing the underlying demand emanating from the EV revolution. US Event Calendar 10am: Oct. Pending Home Sales YoY, prior -7.2% 10am: Oct. Pending Home Sales (MoM), est. 0.8%, prior -2.3% 10:30am: Nov. Dallas Fed Manf. Activity, est. 17.0, prior 14.6 Central Bank speakers: 3pm: Fed’s Williams gives opening remarks at NY Innovation Center 3:05pm: Powell Makes Opening Remarks at New York Fed Innovation Event 3:15pm: Fed’s Hassan moderates panel introducing NY Innovation Center 5:05pm: Fed’s Bowman Discusses Central bank and Indigenous Economies DB's Jim Reid concludes the overnight wrap Last night Henry in my team put out a Q&A looking at what we know about Omicron (link here) as many risk assets put in their worst performance of the year on Friday after it exploded into view. The main reason for the widespread concern is the incredibly high number of mutations, with 32 on the spike protein specifically, which is the part of the virus that allows it to enter human cells. That’s much more than we’ve seen for previous variants, and raises the prospect it could be a more transmissible version of the virus, although scientists are still assessing this. South Africa is clearly where it has been discovered (not necessarily originated from) and where it has been spreading most. The fact that’s it’s become the dominant strain there in just two weeks hints at its higher level of contagiousness. However the read through to elsewhere is tough as the country has only fully vaccinated 24% of its population, relative to at least 68% in most of the larger developed countries bar the US which languishes at 58%. It could still prove less deadly (as virus variants over time mostly are) but if it is more contagious that could offset this and it could still cause similar healthcare issues, especially if vaccines are less protective. On the other hand the South African doctor who first alerted authorities to the unusual symptoms that have now been found to have been caused by Omicron, was on numerous media platforms over the weekend suggesting that the patients she has seen with it were exhausted but generally had mild symptoms. However she also said her patients were from a healthy cohort so we can’t relax too much on this. However as South African cases rise we will get a lot of clues from hospitalisation data even if only 6% of the country is over 65s. My personal view is that we’ll get a lot of information quite quickly around how bad this variant is. The reports over the weekend that numerous cases of Omicron have already been discovered around the world, suggests it’s probably more widespread than people think already. So we will likely soon learn whether these patients present with more severe illness and we’ll also learn of their vaccination status before any official study is out. The only caveat would be that until elderly patients have been exposed in enough scale we won’t be able to rule out the more negative scenarios. Before all that the level of restrictions have been significantly ramped up over the weekend in many countries. Henry discusses this in his note but one very significant one is that ALL travellers coming into (or back to) the UK will have to self isolate until they get a negative PCR test. This sort of thing will dramatically reduce travel, especially short business trips. Overnight Japan have effectively banned ALL foreign visitors. I appreciate its dangerous to be positive on covid at the moment but you only have to look at the UK for signs that boosters are doing a great job. Cases in the elderly population continue to collapse as the roll out progresses well and overall deaths have dropped nearly 20% over the last week to 121 (7-day average) - a tenth of where they were at the peak even though cases have recently been 80-90% of their peak levels. If Europe are just lagging the UK on boosters rather than anything more structural, most countries should be able to control the current wave all things being equal. However Omicron could make things less equal but it would be a huge surprise if vaccines made no impact. Stocks in Asia are trading cautiously but remember that the US and Europe sold off more aggressively after Asia closed on Friday. So the lack of major damage is insightful. The Nikkei (-0.02%), Shanghai Composite (-0.14%), CSI (-0.22%), KOSPI (-0.47%) and Hang Seng (-0.68%) are only slightly lower. Treasury yields, oil, and equity futures are all rising in Asia. US treasury yields are up 4-6bps across the curve, Oil is c.+4.5% higher, while the ZAR is +1.31%. Equity futures are trading higher with the S&P 500 (+0.71%) and DAX (+0.84%) futures in the green. In terms of looking ahead, we may be heading into December this week but there’s still an incredibly eventful period ahead on the market calendar even outside of Omicron. We have payrolls on Friday which could still have a big impact on what the Fed do at their important December 15 FOMC and especially on whether they accelerate the taper. Wednesday (Manufacturing) and Friday (Services) see the latest global PMIs which will as ever be closely watched even if people will suggest that the latest virus surge and now Omicron variant may make it backward looking. Elsewhere in the Euro Area, we’ll get the flash CPI estimate for November tomorrow (France and Italy on the same day with Germany today), and we’ll hear from Fed Chair Powell as he testifies (with Mrs Yellen) before congressional committees tomorrow and Wednesday. There’s lots of other Fed speakers this week (ahead of their blackout from this coming weekend) and last week there was a definite shift towards a faster taper bias, even amongst the doves on the committee with Daly being the most important potential convert. Fed speakers this week might though have to balance the emergence of the new variant with the obvious point that without it the Fed is a fair bit behind the curve. Importantly but lurking in the background, Friday is also the US funding deadline before another government shutdown. History would suggest a tense last minute deal but it’s tough to predict. Recapping last week now and the emergence of the new variant reshaped the whole week even if ahead of this, continued case growth across Europe prompted renewed lockdown measures and travel bans across the continent. Risk sentiment clearly plummeted on Friday. The S&P 500 fell -2.27%, the biggest drop since October 2020, while the Stoxx 600 fell -3.67%, the biggest one-day decline since the original Covid-induced risk off in March 2020. The S&P 500 was -2.20% lower last week, while the Stoxx 600 was down -4.53% on the week. 10yr treasury, bund, and gilt yields declined -16.1bps, -8.7bps, and -14.5bps, undoing the inflation and policy response-driven selloff from earlier in the week. The drop in 10yr treasury and gilt yields were the biggest one-day declines since the original Covid-driven rally in March 2020, while the drop in bund yields was the largest since April 2020. 10yr treasury, bund, and gilt yields ended the week -7.3bps lower, +0.7bps higher, and -5.4bps lower, respectively. Measures of inflation compensation declined due to the anticipated hit to global demand, with 10yr breakevens in the US and Germany -6.8bps and -8.8bps lower Friday, along with Brent and WTI futures declining -11.55% and -13.06%, respectively. Investors pushed back the anticipated timing of rate hikes. As it stands, the first full Fed hike is just about priced for July, and 2 hikes are priced for 2022. This follows a hawkish tone from even the most dovish FOMC members and the November FOMC minutes last week. The prevailing sentiment was the FOMC was preparing to accelerate their asset purchase taper at the December meeting to enable inflation-fighting rate hikes earlier in 2022. Understanding the impact of the new variant will be crucial for interpreting the Fed’s reaction function, though. The impact may not be so obvious; while a new variant would certainly hurt global demand and portend more policy accommodation, it will also likely prompt more virus-avoiding behaviour in the labour market, preventing workers from returning to pre-Covid levels. Whether the Fed decides to accommodate these sidelined workers for longer, or to re-think what constitutes full employment in a Covid world should inform your view on whether they accelerate tapering in December. It feels like a lifetime ago but last week also saw President Biden nominate Chair Powell to head the Fed for another term, and for Governor Brainard to serve as Vice Chair. The announcement led to a selloff in rates as the more dovish Brainard did not land the head job. In Germany, the center-left SPD, Greens, and liberal FDP agreed to a full coalition deal. The traffic-light coalition agreed to restore the debt break in 2023, after being suspended during the pandemic, and to raise the minimum wage to €12 per hour. The SPD’s Olaf Scholz will assume the Chancellorship. The US, China, India, Japan, South Korea, and UK announced releases of strategic petroleum reserves. Oil prices were higher following the announcement, in part because releases were smaller than anticipated but, as mentioned, prices dropped precipitously on Friday on the global demand impact of the new Covid variant. The ECB released the minutes of the October Governing Council meeting, where officials stressed the need to maintain optionality in their policy setting. They acknowledged growing upside risks to inflation but stressed the importance of not overreacting in setting policy as they see how inflation scenarios might unfold. Tyler Durden Mon, 11/29/2021 - 08:01.....»»

Category: dealsSource: nytNov 29th, 2021

Enhancing Product Transparency In An Age Of Social Responsibility

As the COP26 concludes, the focus is now on collaboration to achieve climate and social responsibility at a global scale. This task can lead to a conundrum in a global context where nations may have a tendency to prefer their own solutions to achieve a goal they share with other nations. Q3 2021 hedge fund […] As the COP26 concludes, the focus is now on collaboration to achieve climate and social responsibility at a global scale. This task can lead to a conundrum in a global context where nations may have a tendency to prefer their own solutions to achieve a goal they share with other nations. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Technology startups that offer revolutionary solutions, designed to make our lives easier, have been gaining momentum for quite some time now. Investors see huge profit potential in them, and customers are thrilled with the promised benefits of new gadgets – but both usually look for more than just a great idea. As explained by Lindsay Maizland at The Council on Foreign Relations, where it laid out the stakes: it mainly revolves around the issue of climate change. Looking ahead - achieving product transparency is another issue that will logically follow from any agreed deals. Not all that glitters is gold, and according to statistics, roughly 50% of startups shut down before they have achieved enough growth to operate independently. Among the common factors responsible for that outcome are scarce market need, funding struggles, lack of solid business modelling and launching a product that is overcomplicated. Collective Choices And Universal Impact To address these issues, technology experts do everything in their power to customize solutions that will help startups to stay afloat, while at the same time boosting the operations of pre-existing, stable enterprises. An example of such an expert is Indian-born entrepreneur and startup product manager Bhaskar Ahuja, who launched his own company Originscale. This is a technology startup that uses cloud-based SaaS solutions, artificial intelligence and blockchain technology in order to simplify processes that hinder business development and growth. The target audiences are small and medium enterprise. In addition to launching a technology consulting company, Bhaskar also created a company in the CPG eCommerce space. His background is in product management for technology startups where he has led multi-million dollar operations. A Sustainable Solution Business sustainability has become a value driver for product innovation and revenue growth. Measuring the success of your sustainability initiatives requires collaboration and the proper technology solutions to reduce the burden of collecting data. From creating and tracking sustainability objectives and targets to collecting data from across the entire organization, Cority sustainability software makes it easy for managers and their teams to break down silos and work collaboratively. Cority Product Inc.'s CEO, Mark Wallace, writes that their software allows clients to standardize the data collection process and simplify the reporting process with their fully integrated business intelligence platform. Unlike other companies, their integrated sustainability solution is designed, developed, and supported by industry experts, who have been doing so for more than 30 years. Their unique operations are a direct reflection of their hard-won experiences. Organizations can use Cority's Environmental, Health, Safety, and Quality (EHSQ) software solutions to help them progress on their path to sustainability and operations. Transparency And Simplicity Although transparency and simplification have been goals in the business market for many years, the technology and understanding were previously lacking. It is important to note that large organizations are, of course, complex by nature, but years of chasing modernization resulted in building layer upon layer of complexity in regards to how businesses are structured and managed. What is more, challenges such as globalization, evolving technologies and newly identified threats, including cyber attacks and data leaks, have added to the problem. Companies have become chaotic, distant, ungovernable and – as a result – underperforming. The magnitude of data and information flow has become overwhelming and managers, let alone employees, find it difficult to determine how to draw conclusions or how to prioritize processes and tasks. Working towards simplification and transparency in business, especially when it comes to products and processes, has endless potential and proves to be beneficial for all parties involved. On the managerial level, it saves time, improves efficiency, highlights positive company culture and removes toxicity deriving from misunderstandings and frustrations. Companies that choose simplification are less likely to commit costly errors, suffer from delays, miss deadlines and experience chronic, unhealthy pressure. Lessons From Congra The transparencies, both related to the business and to particular stages of product development, are crucial in shaping a positive image of the company and making it credible in the eyes of its customers. Without these assets, the future of any company is destined to go downhill. It was the case for Conagra Brands Inc (NYSE:CAG), one of the largest packaged food companies in North America. An incredibly successful growth strategy, that they launched in the 1970s, led to acquiring multiple brands and, as a result, losing a single face of the company that the customers could relate to. Organizational chaos and employee frustration, caused by poor communication, took over and what was initially perceived as a success, turned out to be the company's failure. At that point, CEO Gary Rodkin prioritized simplicity as one of the core business values to be implemented. His actions led to creating a bunch of initiatives to fight complexity, which turned out to be a game-changer for both employees and customers – saving the company millions of dollars. The story of ConAgra Foods highlights the ideal that modern product managers, including Bhaskar Ahuja, are fighting for. Nowadays, companies talk more about reducing complexity, and are willing to address areas where simplification can be the most effective. Even though it may seem odd, making an organization simple and keeping it on that trajectory requires a great deal of dedication and explicit strategizing. The outcome, however, is worth it, as there is nothing more compelling than satisfied customers who keep coming back for more. Updated on Nov 26, 2021, 12:01 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkNov 26th, 2021

These Are The Most In Demand Black Friday Brand Deals In 2021

New research by UK card payment provider Paymentsense has revealed the brands with the most in demand Black Friday deals this year! Q3 2021 hedge fund letters, conferences and more Ahead of Black Friday on the 26th November, the payment experts analyzed Google search data for over 1,000 of the world’s best known companies to […] New research by UK card payment provider Paymentsense has revealed the brands with the most in demand Black Friday deals this year! if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Ahead of Black Friday on the 26th November, the payment experts analyzed Google search data for over 1,000 of the world’s best known companies to discover which brands consumers are searching for the most in relation to Black Friday across the world. These Are The Top 20 Brands Globally With The Most In Demand Black Friday Deals Rank Brand Industry Global monthly Search Volume for the Brand Name only Global monthly Search Volume for "*Brand* Black Friday" 1 Target Retailer 45,500,000 5,000,000 2 Walmart Retailer 83,100,000 550,000 3 Best Buy Electronics 30,400,000 301,000 4 Amazon Online Retailer 414,000,000 301,000 5 Kohl's Department store 13,600,000 135,000 6 Home Depot Home improvement 68,000,000 90,500 7 Apple Electronics 30,400,000 90,500 8 Lowe's Home improvement 24,900,000 74,000 9 Nike Sportswear 30,400,000 74,000 10 Macy's Department store 13,600,000 49,500 11 Ikea Home 83,100,000 49,500 12 Dyson Electronics 5,000,000 49,500 13 Game Entertainment 37,200,000 49,500 14 Zara Clothing 37,200,000 49,500 15 Zalando Clothing 30,400,000 49,500 16 Costco Wholesaler 37,200,000 40,500 17 GameStop Electronics 11,100,000 40,500 18 Sephora Beauty 11,100,000 40,500 19 Lululemon Sportswear 7,480,000 33,100 20 Adidas Sportswear 20,400,000 33,100 The same 1,000+ brands were also analysed looking at global search volumes over the world. Overall, the retail giant Target was the most searched for brand with a staggering 5 million searches a month for “Target Black Friday”. Every year Target offers customers huge savings on gaming, electronics, clothing and more! With over 9 times fewer searches, multinational retailer Walmart takes second place with 550,000 searches a month. Electronics retailer Best Buy rounds up the top three with a huge 301,000 searches on average this month across the world! The Psychology Behind Black Friday: Why Do Consumers Spend More Online During This Time? Head of Consumer Insight, Jon Knott, at commented on the reason why consumers tend to spend more online on Black Friday. “With coronavirus restrictions affecting the way we shop, a slight decrease in Black Friday spending in 2020, according to Statista. However, this year it is predicted a record amount will be spent on Black Friday deals - with many customers purchasing through online channels. The infamous overnight queues of shoppers trying to secure their place in line have become less common in recent years. The move to online was always predicted to happen due to e-commerce convenience, easier price comparison, and quick delivery options. However, this transition was sped up massively to the pandemic as the demand for all these features was suddenly very apparent. Many companies now also expand their deals to start the week before exclusively on site, which has also encouraged people to move online. This deal also lengthens shopping momentum, which is the impulse to keep shopping after an initial purchase. E-commerce stores, especially fashion brands, have also emulated the real-in store experience by promoting add-ons with features such as ‘frequently bought with’ or ‘complete the set’. Alongside a minimum delivery spend, meaning customers are being tempted to spend more than intended. When paying for items physically via card or cash payments, it’s easier to keep note of how much you’ve spent. Whereas with online shopping, you can easily lose track of spending by either buying in bulk, such as multiple sizes, or purchasing items that you can ‘buy now’ but ‘pay later’. Additionally, office closures mean people are spending less money on amenities, such as traveling or parking. Working from home also frees up a lot of spare time. Online shopping is then a leisure activity and form of escapism that we can use to fill up the excess of free time we find ourselves with. This said, long physical queues are not a thing of the past just yet, as both online and offline Black Friday deals attract many customers to shop impulsively to secure limited time offers in fear of missing out.” About Paymentsense Founded in 2008 by George Karibian and Jan Farrarons, Paymentsense is one of the fastest-growing fintech companies in Europe, and proud to be an industry game-changer. They currently supply card machines and e-commerce solutions to over 80,000 businesses in the UK and Ireland. Combining cutting-edge technology, extraordinary customer support and unconventional thinking, they offer low rates and peace of mind to their customers. Their smart proprietary technology platform enables small businesses to process payments online, in-store and over the phone. About Jon Knotts Jon has over ten years’ experience in consumer research and delivering data-led thought leadership. He is a seasoned conference speaker in the hospitality sector, including at the Takeaway Expo, and is known for being an active data advocate in the fintech space. Jon has previously worked with some of the biggest retailers and brands globally and now leads the research team as Head of Insight at Paymentsense, Europe’s biggest merchant services provider. He is responsible for identifying and understanding industry & consumer trends. Methodology Google Search volume data for each brand name followed by “Black Friday” was analysed, for example “Aldi Black Friday”. Figers correct as of November 18th 2021. Updated on Nov 24, 2021, 1:04 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkNov 24th, 2021

Transcript: Edwin Conway

   The transcript from this week’s, MiB: Edwin Conway, BlackRock Alternative Investors, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS:… Read More The post Transcript: Edwin Conway appeared first on The Big Picture.    The transcript from this week’s, MiB: Edwin Conway, BlackRock Alternative Investors, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, man, I have an extra special guest. Edwin Conway runs all of alternatives for BlackRocks. His title is Global Head of Alternative Investors and he covers everything from structured credit to real estate hedge funds to you name it. The group runs over $300 billion and he has been a driving force into making this a substantial portion of Blackrock’s $9 trillion in total assets. The opportunity set that exists for alternatives even for a firm like Blackrock that specializes in public markets is potentially huge and Blackrock wants a big piece of it. I found this conversation to be absolutely fascinating and I think you will also. So with no further ado, my conversation with Blackrock’s Head of Alternatives, Edwin Conway. MALE VOICEOVER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. RITHOLTZ: My extra special guest this week is Edwin Conway. He is the Global Head of Blackrock’s Alternative Investors which runs about $300 billion in assets. He is a team of over 1,100 professionals to help him manage those assets. Blackrock’s Global alternatives include businesses that cover real estate infrastructure, hedge funds private equity, and credit. He is a senior managing director for BlackRock. Edwin Conway, welcome to Bloomberg. EDWIN CONWAY, GLOBAL HEAD OF ALTERNATIVE INVESTORS, BLACKROCK: Barry, thank you for having me. RITHOLTZ: So, you’ve been in the financial services industry for a long time. You were at Credit Suisse and Blackstone and now you’re at BlackRock. Tell us what the process was like breaking into the industry? CONWAY: It’s an interesting on, Barry. I grew up in a very small town in the middle of Ireland. And the breakthrough to the industry was one of more coincident as opposed to purpose. I enjoyed the game of rugby for many years and through an introduction while at the University, in University College Dublin in Ireland, had a chance to play rugby at a quite a – quite a decent level and get to know people that were across the industry. It was really through and internship and the suggestion, I’ve given my focus on business and financing things that the financial services sector may be a great place to traverse and get to know. And literally through rugby connections, been part of a good school, I had an opportunity to really understand what the service sector, in many respects, could provide to clients and became absolutely intrigued with it. And what – was it my primary ambition in life to be in the financial services sector? I can definitively say no, but through the circumstance of a game that I love to play and be part of, I was introduced to, through an internship, and actually fell in love with it. RITHOLTZ: Quite interesting. And alternative investments at Blackrock almost seems like a contradiction in terms. Most of us tend to think of Blackrock as the giant $9 trillion public markets firm best known for ETFs and indices. Alternatives seems to be one of the fastest-growing groups within the firm. This was $50 billion just a few years ago, it’s now over 300 billion. How has this become such a fast-growing part of BlackRock? CONWAY: When you look at the various facets which you introduced at the start, Barry, we’ve actually been an alternatives – will be of 30 years now. Now, the scale, as you know, which you can operate on the beta side of business, far surpasses that on the alpha side. For us, throughout the years, this was very much about how can we deliver investment excellence to our clients and performance? Therefore, going an opportunity somewhere else to explore an alpha opportunity in alternatives. And I think being so connected to our clients understanding, that this pivots was absolutely taking place at only 30 years ago but in a very pronounced way today, you know, we continue to invest in this business to support those ambitions. They’re clearly seeing this as the world of going through a tremendous amount of transformation and with some of the challenges, quite frankly, in the traditional asset classes, being able to leverage at BlackRock, the Blackrock muscle to really explore these alpha opportunities across the various alternative asset classes that in our mind wasn’t imperative. And the imperative, really, is from the firm’s perspective and if you look at our purpose, it’s to serve the client. So the need was coming from them. The necessity to have alternatives and their whole portfolio was very – was very much growing in prominence. And it’s taken us 30 years to build this journey and I think, Barry, quite frankly, we’re far from being done. As you look at the industry, the demand is going to continue to grow. So, I think you could expect to see from us a continued investment in the space because we don’t believe you can live without alternatives in today’s world. RITHOLTZ: That’s really – that’s really interesting. So let’s dive a little deeper into the product strategy for alternatives which you are responsible for at BlackRock. Our audiences is filled with potential investors. Tell them a little bit about what that strategy is. CONWAY: So we’re – I think as you mentioned, we’re in excess of 300 billion today and when we started this business, it was less about building a moat around private equity or real estate. I think Larry Fink’s and Rob Kapito’s vision was how do we build a platform to allow us to be relevant to our clients across the various alternative asset classes but also within the – within the confines of what they are permitted to do on a year-by-year basis. So, to always be relevant irrespective of where they are in their journey from respect of liabilities, demand for liquidity, demand for returns, so we took a different approach. I think, Barry, to most, it was around how do we scale into the business across, like you said, real estate equity and debt, infrastructure equity and debt. I mean, we think of that as the real assets platform of our business. Then you take our private equity capabilities both in primary investing, secondary et cetera, and then you have private credits and a very significant hedge fund platforms. So we think all of these have a real role and depending on clients liquidities and risk appetite, our goal was, to over the years, really build in to this to allow ourselves for this challenging needs that our clients have. I think as an industry, right, and over the many years alternatives have been in existence, this is been about return enhancement initially. I think, fundamentally, the changes around the receptivity to the role of alternatives in a client’s portfolio has really changed. So, we’ve watched it, Barry, from this is we’re in the pursuit of a very total return or absolute return type of an objective to now resilience in our portfolio, yield an income. And so things that probably weren’t perceived as valuable in the past because the traditional asset classes were playing a more profound role, alternatives have stepped up in – in many respects in the need to provide more than just total return. So, we’re taking the approach of how do you have a more holistic approach to this? How do we really build a global multi-alternatives capability and try to partner and I think that’s the important work for us. Try to partner with our clients in a way that we can deliver that outperformance but delivered in a way that probably our clients haven’t been used to in this industry before. Because unfortunately, as we know, it has had its challenges with regard to secrecy, transparency, and so many other aspects. We need to help the industry mature. And really that was our ambition. Put our client’s needs first, build around that and really be relevant in all aspects of what we’re doing or trying to accomplish on behalf of the people that they support and represent. RITHOLTZ: So, we’ll talk a little bit about transparency and secrecy and those sorts of things later. But right now, I have to ask what I guess is kind of an obvious question. This growth that you’ve achieved within Blackrock for nonpublic asset allocation within a portfolio, what is this coming at expense of? Are these dollars that are being moved from public assets into private assets or you just competing with other private investors? CONWAY: It’s really both. What – what you are seeing from our clients – if I take a step back, today, the institutional client community and you think about the – the retirement conundrum we’re all facing around the world. It’s such an awful challenge when you think how ill-prepared people are for that eventual stepping back from the workplace and then you know longevity is your friend, but can also be a very, very difficult thing to obviously live with if you’re not prepared for retirement. The typical pension plan today are allocating about 25 percent to 28 percent in alternatives. Predominantly private market. What they’re telling us is that’s increasing quite substantially going forward. But you know, the funding for that alpha pursue for that diversification and that yield is coming from fixed-income assets. It’s coming from equity assets. So there’s a real rebalancing that’s been taking place over the past number of years. And quite frankly, the evolution, and I think the innovation that’s taken place particularly in the past 10 years, alternatives has been really profound. So the days where you just invest in any global funds still exist. But now you can concentrate your efforts on sector exposure, industry exposures, geographic exposures, and I think the – the menu of things our clients can now have access to has just been so greatly enhanced at and the benefit is that but I think in some – in some respects, Barry, the next question is with all of those choices, how do you build the right portfolio for our client’s needs knowing that each one of our client’s needs are different? So, I would say it absolutely coming from the public side. We’re very thankful. Those that had a multiyear journey with us in the public side are now allocating capital to is now the private side to because I do think the – the industry given that change, given that it evolution and given the complexity of these private assets, our clients are looking to, quite frankly, do more with fewer managers because of the complexion of the industry and complexity that comes with it. RITHOLTZ: Quite – quite interesting. (UNKNOWN): And attention RIA’s. Are your clients asking for crypto? At interactive brokers, advisers can now offer crypto to their clients and you could trade stocks, options, futures currencies, bonds and more from the same platform. Commissions on crypto are just 12-18 basis points with no hidden spreads or markups and there are no ticket charges, custody fees, minimums platform or reporting fees. Learn more at IBKR.com/RIA crypto. RITHOLTZ: And I – it’s pretty easy to see why large institutions might be rotating away from things like treasuries or tips because there’s just no yield there. Are you seeing inflows coming in from the public equity side also? The markets put together a pretty good string of years. CONWAY: Yes. It absolutely has. And many respects, I think, we’ve had a multiyear where there was big questions around the alpha that can be generated, for example, from active equities? The question was active or passive? I think what we’ve all realized is that at times when volatility introduces itself which is frequent even independent of what’s been done from a fiscal and monetary standpoint, that these Alpha speaking strategies on the traditional side still make a lot of sense. And so, as we think about what – what’s happening here, the transition of assets from both passive and active strategies to alternative, it – it’s really to create better balance. It’s not that there’s – there’s a lack of relevance anymore in the public side. It’s just quite frankly the growth of the private asset base has grown so substantially. I moved, Barry, to the U.S. in 1998. And it’s interesting, when you look back at 1998 to today, you start to recognize the equity markets and what was available to invest in. The number of investable opportunities has shrunk by 40 plus percent which that compression is extraordinarily high. But yet you’ve seen, obviously, the equity markets grow in stature and significance and prominence but you’re having more concentration risk with some of the big public entities. The converse is true, though on the – on the private side. There’s this explosion of enterprise and innovation, employment creation, and then I believe opportunities has been real. So, I look at the public side, the investable universe is measured in the thousands and the private side is measured in the millions. RITHOLTZ: Wow. CONWAY: And I think part of the – part of the part of the thing our clients are not struggling with but what we’re really recognizing with – with enterprises staying private for longer, if not forever, and with his growth of the opportunities that open debt and equity in the private market side, you really can’t forgo this opportunity. It has to be part of your going forward concerns and asset allocation. And I think this is why we’re seeing that transformation. And it’s not because equities on fixed income just aren’t relevant anymore. They’re very relevant but they’re relevant now in a total portfolio or a whole portfolio context beside alternatives. RITHOLTZ: So, let’s discuss this opportunity set of alternatives where you guys at Blackrock scene demand what sectors and from what sorts of clients? Is this demand increasing? CONWAY: We’re very fortunate, Barry. Today, there isn’t a single piece of our business within – within Blackrock alternatives that isn’t growing. And quite frankly too, it’s really up to us to deliver on the investment objectives that are set forth for those clients. I think in the back of strong absolute and relative performance, thankfully, our clients look to us to – to help them as – as they think about what they’re doing and as they’re exploring more in the alternatives areas. So, as you know, certainly, the private equity and real estate allocations are quite mature in many of our client’s portfolios but they’ve been around for many decades. I think that the areas where we’re seeing – that’s called an outside demand and opportunity set, just but virtue of the small allocations on a relative basis that exist today is really around infrastructure, Barry, and its around private credits. So, to caveat that, I think all of the areas are certainly growing, and thankfully, for us that’s true. We’re looking at clients who we believe are underinvested, we believe they’re underinvested in those asset classes infrastructure both debt and equity and in private credit. And as you think about why that is, the attributes that they bring to our client is really important and in a world where your correlation and understanding those correlations is important that these are definitely diversifying assets. In a world where you’re seeing trillions of dollars, quite frankly, you’re providing little to no or even there’s negative yield. Those short falls are real and people need yield than need income. These assets tend to provide that. So the diversification, it comes from these assets. The yield can come from these assets and because of the immaturity of the asset classes, independence of the capital is flowing in, we still consider them relatively white space. You’re not crowded out. There’s much room for development in the market and with our client’s portfolios. And to us, that’s exciting because it presents opportunities. So, at the highest level, they’re the areas where I believe are most underdeveloped in our clients. RITHOLTZ: So let’s talk about both of those areas. We’ll talk about structured credit in a few minutes. I think everybody kind of understands what – what that is. What – when you see infrastructure as a sector, how does that show up as an investment are – and obviously, I have infrastructure on the brink because we’re recording this not too long after the giant infrastructure bill has been passed, tell us a little bit about what alternative investments in infrastructure looks like? CONWAY: Yes. It’s really in its infancy and what the underlying investments look like. I think traditionally, you would consider it as – and part of the bill that has just been announced, roads, bridges, airports. Some of these hard assets, some of the core infrastructure investments that have been around for actually some time. The interesting thing is the industry has evolved so much and put the need for infrastructure. It’s so great across both developed and emerging economies. It’s become something that if done the right way, the attributes we just spoke of can really have a very strong effect on our client’s portfolios. So, beyond the core that we just mentioned, well, we’ve seen a tremendous demand as a result of this energy transition. You’re really seeing a spike in activity and the necessity transition industry to cleaner technologies, a movement, not away completely from fossil fuel but integrating new types of clean energy. And as a result, you’ve seen a lot of demand on a global basis for wind and solar. And quite frankly, that’s why even us at BlackRock, albeit, 10-12 years ago, we really established a capability there to help with that transition to think about how do we use these technologies, solar panels, wind farms, to generate clean forms of energy for utilities where in some cases they’re mandated to procure this type of this type of – this type of power. And when you think about pre-contracting with utilities for long duration, that to me spells, Barry, good risk mitigation and management and ability to get access to clean forms of energy that throw off yield that can be very complementary to your traditional asset classes but for very long periods of time. And so, the benefits for us of these – these assets is that they are long in duration, they are yield enhancing, they’re definitely diversifying. And so, for us, where – we’ve got about, let’s call this 280 assets around the world that we’re managing that literally generate this – this clean electricity. I think to give the relevance of how much, I believe today, it’s enough to power the country of Spain. RITHOLTZ: Wow. CONWAY: And that’s really that’s really changing. So you’re seeing governments – so from a policy standpoint, you’re seeing governments really embracing new forms of energy, transitioning out of bunker fuels, for example, you know, burning diesels which really spew omissions into the – into the into the environment. But it’s really around modernizing for the future. So, developed and emerging economies alike, want to retain capital. They want to attract new capital and by having the proper infrastructure to support industry, it’s a really, really important thing. Now, on the back of that too, one things we’ve learned from COVID is that the necessity to really bring e-commerce into how you conduct your business is so important and I think from the theme of digitalization within infrastructure to is a huge part. So, it’s not just the energy transition that you’re seeing, it’s not just roads and bridges, but by allowing businesses to connect to a global consumer, allowing children be educated from home, allowing experiences that expand geographies and boundaries in a digital form is so important not just for commerce but in so many other aspects. And so, you think about cable, fiber optics, if you think about all the other things even outside of power, that enable us to conduct commerce to educate, there are many examples where, Barry, you can build resilience into your portfolio because that need is not measured in years. Actually, the shortfall of capital is measured in the trillions so which means this is – this is a multi-decade opportunity set from our vantage point and one of which our clients should really avail of. RITHOLTZ: Quite interesting. And I mentioned in passing, structured credit, tell us a little bit about what that opportunity looks like. I think of this as a space that is too big for local banks but too small for Wall Street to finance. Is that an oversimplification? What is going on in that space. CONWAY: I probably couldn’t have set it better, Barry. It’s – if we go back to just the even the investable universe, in the tens of thousands of companies, just if we take North America that are private, that have great leadership that really have strategic vision under – at the – in some cases, at the start of their growth lifecycles are even if they maintain, they have a very credible and viable business for the future they still need capital. And you’re absolutely right. With the retreat of the banks from the space to various regulations that have come after the global financial crisis, you’re seeing the asset managers in many respects working behalf of our clients both wealth and institutional becoming the new lenders of choice. And – and when we – when we think about that opportunity set, that is really understanding the client’s desire for risk or something maybe in a lower risk side from middle-market lending or midmarket enterprises where you can support that organization through its growth cycle all the way to some higher-yielding, obviously, with more risk assets on the opportunistic or even the special situations side. But it – it expands many things. And going back of the commentary around the evolution of the space, private credit today and what you can do has changed so profoundly, it expands the liquidity spectrum, it expands the risk spectrum. And the great news is, with the number of companies both here and abroad, the opportunities that is – it’s being enriched every single day. And were certainly seeing, particularly going back to the question are some of these assets coming from the traditional side, the public side. When we think of private credit, you are seeing private credit now been incorporated in fixed-income allocations. This is a – it’s a yelling asset. This is – these are debt instruments, these are structures that we’re creating. We’re trying to flexible and dynamic with these clients. But it really is an area where we think – it really is still at its – at its infancy relevant to where it can potentially be. RITHOLTZ: That’s really quite – quite interesting. (UNKNOWN): It’s Rob Riggle. I’m hosting Season 2 of the iHeart radio podcast, Veterans You Should Know. You may know me as the comedic actor from my work in the Hangover, Stepbrothers or 21 Jump Street. But before Hollywood, I was a United States Marine Corps officer for 23 years. For this Veterans Day, I’ll be sitting down with those who proudly served in the Armed Forces to hear about the lessons they’ve learned, the obstacles they’ve overcome, and the life-changing impact of their service. Through this four-part series, we’ll hear the inspiring journeys of these veterans and how they took those values during their time of service and apply them to transition out of the military and into civilian life. Listen to Veterans You Should Know on the iHeart radio app, Apple Podcast or wherever you get your podcast. RITHOLTZ: Let’s stick with that concept of money rotating away from fixed income. I have to imagine clients are starved for yields. So what are the popular substitutes for this? Is it primarily structured credit? Is it real estate? How do you respond to an institution that says, hey, I’m not getting any sort of realistic coupon on my bonds, I need a substitute? CONWAY: Yes. It’s all of those in many respects. And I think to the role, even around now a time where people have questions around inflation, how do substitute this yield efficiency or certainly make up for that shortfall, how do you think about a world where increasingly seeing inflation, not of the transitory thing it feels certainly quasi-permanent. These are a lot of questions we’re getting. And certainly, real estate is an is important part of how they think about inflation protection, how client think about yield, but quite frankly too, we’ve – we’ve gone through something none of us really had thought about a global pandemic. And as I think about real estate, just how you allocate to the sector, what was very heavily influenced with retail assets, high street, our shopping behaviors and habits have changed. We all occupied offices for obviously many, many years pre the pandemic. The shape of how we operate and how we do that has changed. So, I think some of the underlying investment – investments have changed where you’ve seen heavily weighted towards office space to leisure, travel in the past. Actually, now using a rotation in some respects out of those, just given some of the uncertainties around what the future holds as we come – come through a really difficult time. But the great thing about this sector is between senior living, between student housing, between logistics and so many other parts, there are ways in real estate to capture where there’s – where there’s demand. So still a robust opportunity set and it – and we do think it can absolutely be yield enhancing. We mentioned infrastructure. Even if you think about – and we mention OECD and non-OECD, emerging and developed, when I think about Asia, in particular, just as a subset of the world in which we’re living in, that is a $2.6 trillion alternative market today growing at a 15 percent CAGR. And quite frankly, the old-growth is driven by the large economic growth in the region. So, even from a regional perspective, if we pivot, it houses 57 percent of the world’s population and yet delivers 47 percent of the world’s economic growth. So, think of that and then with regard to infrastructure and goes back to that, this is truly a global phenomenon. So if we just even take that sector, Barry, you’ll realize that the way to maintain that type of growth, to attract capital, to keep capital, it really requires an investment of significant amount of money to be able to sustain that. And when you have 42 million people in a APAC migrating to cities in the year going back to digitalization, that’s an important thing. So, when I say we’re so much at the infancy in infrastructure, I really mean it. It can be water, it can be sewer systems, it can be digital, it can be roads, there’s so much to this. And then even down to the regional perspective, it’s a – it’s a need that doesn’t just exist in the U.S. So, for these assets, this tend to be long in duration. There’s both equity and debt. And on the debt side, quite frankly, very few outside of our insurance clients and their general account are taking advantage of the debt opportunity. And – and as we both know, to finance these projects that are becoming more plentiful every single day, across the world, including like, I said, in APAC in scale, there’s an opportunity in both sides. And I think that’s where the acid mix change happen. It’s recognizing that the attributes of these assets can have a role, the attributes of these assets can potentially replace some of these traditional assets and I think you’re going to see it grow. So, infrastructure to us, it’s really equity and debt. And then on the credit side, like I mentioned, again, too, it’s a very, very big and growing market. And certainly, the biggest area today from our vantage point is middle-market lending from a scale opportunity standpoint. So, we think much more to come in all of those spaces. RITHOLTZ: Really interesting. And let’s just stay with the concept of public versus private. That line is kind of getting blurred and the secondary markets is liquidity coming to, for lack of a better phrase, pre-public equities, tells little bit about that space. Is that an area that is ripe for growth for BlackRock? CONWAY: Yes. We absolutely think it is and you’re absolutely correct. The secondary market is – has grown quite substantial. If you even look at just the private equity secondary market and what will transact this year, I think it will be potentially in excess of 100 billion. And that’s what were clear, not to mention what will be visible and what will be analyzed. And that speaks to me what’s really happening and the innovation that we mentioned earlier. It’s no longer about just primary exposure. It’s secondary exposure. When we see all sort of interest and co-investment opportunities as well, I think the available sources of alpha and the flexibility you can now have, albeit if directed and advised, I believe the right way, Barry, can be very helpful and in the portfolio. So, your pre-IPO, it is a big part of actually what we do and we think about growth equity. There is – it’s a significant amount of capital following that space. Now, from our vantage point, as one of the largest investors in the public equity market and now obviously one of the largest investors and they in the private side, the bridge between – between private to public – there’s a real need. IPOs are not going away. And I think smart, informed capital to help with this journey, this journey is really – is really a necessity and a need. RITHOLTZ: So let’s talk a little bit about this recent restructuring. You are first named Global Head of Blackrock Alternative Investors in April 2019, the entire alternatives business was restructured, tell us a little bit about how that restructuring is going? CONWAY: Continues to go really well, Barry. When you look at the flow of acid from our clients, I think, hopefully, that’s speaks to the performance we’ve been generating. I joined the firm, as you know, albeit, 11 years ago and being very close to the alternative franchise as a critical thing for me and running the institutional platform. To me, when you watched this migration of asset towards alternatives, it was obviously very evident for decades now that this is a critical leg of the stool as our clients are thinking about their portfolios. We’re continuing to innovate. We’re continuing to invest, and thankfully, we’re continuing to deliver strong performance. We’re growing at about high double digits on an annual basis but we’re trying to purposeful too around where that growth is coming from. I think the reality is when you look at the competitive universe, I think the last number I saw, it was about 38,000 alternative asset managers out there today, obviously, coming from hedge funds all the way to private credits and private equity. So, competition is real and I do think the outcomes for our clients are starting to really grow. Unfortunately, some – in some cases, obviously, very good, and in some cases, actually not great. So our focus, Barry, is really much on how can we deliver performance, how can we be a partner? And I think we been rewarded with a trust and the faith our clients have in us because they’re seeing something different, I think, from us. Now, the scale of the business that you mentioned earlier really gives us tentacles into the market that I believe allows us to access what I think is the new alpha which is in many respects, given the heft of competition sourcing and originating new investments is certainly harder but for us, sitting in or having alternative team, sitting in 50 offices around the world, really investing in the markets because that – the market they grew up with and have relationships within, I think this network value that we have is something that’s quite special. And I think in the world that’s becoming increasingly competitive, we’re going to continue to use and harness that network value to pursue opportunities. And thankfully, as a result of the partnership we’ve been pursuing with her clients, like, we’ve – we’re certainly looking for opportunities and investments in our funds. But because of the brand, I think because of the successes, opportunities seeks us as much as we seek opportunity and that has been something that we look at an ongoing basis and feel very privileged to actually have that inbound flow as well. RITHOLTZ: Really quite interesting. There was a quote of yours I found while doing some prep for this conversation that I have to have you expand on. Quote, “The relationship between Blackrock’s alternative capabilities and wealth firms marked a large opportunity for growth in the coming years.” This was back in 2019. So, the first part of the question is, was your expectations correct? Did you – did you see the sort of growth you were hoping for? And more broadly, how large of an opportunity is alternatives, not just for BlackRock but for the entire investment industry? CONWAY: Yes. It’s been very much an institutional opportunity set up until now. And there’s so much to be done, still, to really democratize alternatives and we certainly joke around making alternatives less alternative. Actually, even the nomenclature we use and how we describe it doesn’t kind of make sense anymore. It’s such a core – an important allocation to our clients, Barry, that just calling it alternative seems wrong. Just about the institutional clients. It ranges, I think, as I mentioned on our – some of our more conservative clients which would be pension plans which really have liquidity needs on a monthly basis because of the liabilities they have to think about. At about 25 plus percent in private markets, to endowments, foundations, family offices, going to 50 percent plus. So, it’s a really important part and has been for now many years the institutional client ph communities outcomes. I think the thing that we, as an industry, have to change is alternatives has to be for the many, not for the few. And quite frankly, it’s been for the few. And as we talked about some of the attributes and the important attributes of these asset classes to think that those who have been less fortunate in their careers can’t access, things they can enrich their future retirement outcomes, to me, is a failing. And we have to address that. That comes from regulation changes, it comes from structuring of new products, it comes from education and it comes from this knowledge transmission where clients in the wealth segment can understand the role of alternatives and the context of what can do as they invest in equities and fixed income too. And we think that’s a big shortfall. So, the journey today, just to give you a sense, as we look at her clients in Europe on the wealth side, on average, as you look from what we would call the credited investors all the way through to more ultra-high-net worth individuals, their allocation to alternatives, we believe, stands at around two to three percent of their total portfolio. In the U.S., we believe it stands at three to five. So, most of those intermediaries, we speak to our partners who were more supporting and serving the wealth channel. They have certainly an ambition to help their clients grow that to 20 percent and potentially beyond that. So, when I look at that gap of let’s call it two to three to 20 percent in a market that just given the explosion in wealth around the world, I think the last numbers I saw, this is a $65 trillion market. RITHOLTZ: Wow. CONWAY: That speaks to the shortfall relative to the ambition. And how’s it been going? We have a number of things and capabilities we’ve set up to allow for this market to experience, hopefully, private equity, hedge funds, credit, and an infrastructure in ways they haven’t in the past. We’ve done this in the U.S., we’re doing it now in Europe, but I will say, Barry, this is still very much at the start of the journey. Wealth is a really important part of our future given our business, quite, frankly is 90 plus percent institutional today, but we’re looking to change that by, hopefully, democratizing these asset classes and making it so much more accessible in that of the past. RITHOLTZ: So, we hinted at this before but I’m going to ask the question outright, how significant is interest rates to client’s risk appetites, how much of the current low rate environment are driving people to move chunks of their assets from fixed income to alternatives? CONWAY: It’s really significant, Barry. I think the transition of these portfolios is quite profound, So you – and I think the unfortunate thing in some respects as this transition happens that you’re introducing new variables and new risks. The reason I say it’s unfortunate and that I think as an industry, this goes back to the education around the assets you own, understanding the role, understanding the various outcomes. I think it’s so incredibly important and that this the time where complete transparency is needed. And quite frankly, we’re investing capital that’s not ours. As an industry, we’re investing our client’s assets and they need to know exactly the underlying investments. And in good and bad times, how would those assets behave? So certainly, interest rates are driving a flow of capital away from these traditional assets, fixed-income, and absolutely in towards real estate, infrastructure, private creditors, et cetera, in the pursuit of this – this yield. But I do – I do think one of the things that’s critically important for the institutional channel, not just the wealth which are newer entrants is this transmission of education, of data because that’s how I think you build a better balanced portfolio and that’s a – that’s a real conundrum, I think, that the industry is facing and certainly your clients too. RITHOLTZ: Quite interesting. So let’s talk a little bit about the differences between investing in the private side versus the public markets, the most obvious one has to be the illiquidity. When you buy stocks or bonds, you get a print every microsecond, every tick, but most of these investments are only marked quarterly or annually, what does this illiquidity do when you’re interacting with clients? How do you – how do you discuss this with them in and how do perceive some of the challenges of illiquid investments? CONWAY: Over the – over the past number of decades, I think our clients have largely held too much liquidity in their portfolios. Like, so what we are finding is the ability to take on illiquidity risk. And obviously, in pursuit of that premium above, the traditional markets, I mean, I think the sentiment they are is it an absolute right one. That transition towards private market exposure, we think is an important one just given the return objectives, the majority of our clients’ need but then also again, most importantly now, with geo policy, with uncertainty, with interest rate uncertainty, inflation uncertainty, I mean, the – going back to the resilience point, the characteristics now by introducing these assets into the mix is important. And I think that’s – that point is maybe what I’ll expand on. As were talking to clients, using the Aladdin systems, and as you know, we bought eFront technologies, albeit a couple of years ago, by allowing, I think, great data and technology to help our clients understand these assets and the context of how they should own them relative to other liquidity needs, their risk tolerances, and the return expectations are really trying to use tech and data to provide a better understanding and comprehension of the outcomes. And as we continue to introduce these concepts and these approaches, by the way, that there is, as you know, so used to in the traditional side, it – it gives them more comfort around what they should and can expect. And that, to me, is a really important part of what we’re doing. So, we’ve released recently new technology to the wealth sector because, quite frankly, we mentioned it before, the 60-40 portfolio is a thing of the past. And that introduction of about 20 percent into alternatives, we applaud our partners who are – who are suggesting that to their clients. We think it’s something they have to do. What we’re doing to support that is really bringing thought leadership, education, but also portfolio construction techniques and data to bear in that conversation. And this goes back to – it’s no longer an alternative, right? This is a core allocation so the comprehension of what it is you own, the behavior of the asset in good and bad times is so necessary. And that’s become a very big thing with regard to our activities, Barry, because your clients are looking to understand better when you’re talking about assets that are very complex in their nature. RITHOLTZ: So, 60-40 is now 50-30-20, something along those lines? CONWAY: Yes. RITHOLTZ: Really, really intriguing. So, what are clients really looking for these days? We talked about yield. Are they also looking for downside protection on the equity side or inflation hedges you hinted at? How broad are the demands of clients in the alternative space? CONWAY: Yes. It ranges the gamut. And even – we didn’t speak to even hedge funds, we’ve had differing levels of interest in the hedge fund world for years and I, quite frankly, think some degree of disappointment too, Barry, with regard to the alpha, the returns that were produced relevant to the cost. RITHOLTZ: It’s a tough space to say the very least exactly. CONWAY: Exactly right. But when you start to see volatility introducing itself, you can really see where skill plays a critical factor. So, we are absolutely seeing, in the hedge fund, a resurgence of interest and demand by virtue of those who really have honed in on their scale, who have demonstrated an up-and-down markets and ability to protect and preserve capital, but importantly, in a low uncorrelated way build attractive risk-adjusted returns. We’re starting to see more activity there again too. I think with an alternatives, you’ve really seen a predominant demand coming from privates. These private markets, like a set of growths so extraordinarily fast and the opportunities that is rich, the reality too on the public side which is where our hedge funds operate, they continue to, in large part, do a really good job. The issue with our industry now with these 38,000 managers is how do you distill all the information? How do you think about your needs as a client and pick a manager who can deliver the outcomes? And just to give you a sense, the difference now between a top-performing private equity manager, a top quartile versus the bottom quartile, the difference can be measured in tens of percent. RITHOLTZ: Wow. CONWAY: Whereas if you look at the public equity side, for example, a large cap manager, top quartile versus bottom quartile is measured in hundreds of basis points. So, there is definitely a world that has started where the outcomes our clients will experience can be great as they pursue yield, as they pursue diversification, inflation protection, et cetera. I think the caveat that I would say is outcomes can vary greatly. So manager underwriting and the importance of it now, I think, really is this something to pay attention to because if you do have that bottom performing at the bottom quartile manager, it will affect your outcomes, obviously. And that’s what we collectively have to face. RITHOLTZ: So, let’s talk a little bit about real estate. There are a couple of different areas of investment on the private side. Rent to own was a very large one and we’ve seen some lesser by the flip algo-driven approaches. Tell us what Blackrock is doing in the real estate space and how many different approaches are you bringing to bear on this? CONWAY: Yes, we think it’s both equity and debt. Again, no different to the infrastructure side, these projects need to be financed. But on the – as you think about the sectors in which you can avail of the opportunity, you’ve no doubt heard a lot and I mentioned earlier this demand for logistics facilities. The explosion of shopping online and having, until we obviously have the supply chain disruption, an ability to have nearly immediate satisfaction because the delivery of the good to your home has become so readily available. It’s a very different consumer experience. So the explosion and the need for logistics facilities to support this type of behavior of the consumer is really an area that will continue to be of great interest too. And then you think about the transformation of business and you think about the aging world. Unfortunately, you can look at various economies where our populations are decreasing. And quite frankly, we’re getting older. And so, were you’re thinking of the context of that senior living facilities, it becomes a really important part, not just as part of the healthcare solution that come with it, but also from living as well. So, single-family, multifamily, opportunities continue to be something that the world looks at because there is really the shortfall of available properties for people to live in. And as the communities evolve to support the growing age of the population, tremendous opportunity there too. But we won’t give up on office space. It really isn’t going away. Now, if you even think about our younger generation here in BlackRock, they love being in New York, they love being in London, they love being in Hong Kong. So, the shape and the footprint may change slightly. But the necessity to be in the major financial centers, it still exists. But how we weighed the risks has definitely changed, certainly, for the – for the short-term and medium-term future. But real estate continues to be, Barry, a critical part of how we express our thought around the investment opportunity set. But clients largely do this themselves too. The direct investing from the clients is quite significant because they too see this as still as a rich investment ground, albeit, one that has changed quite a bit as a result of COVID. RITHOLTZ: Well, I’m fascinated by the real estate issue especially having seen some massive construction take place in cities pre-pandemic, look over in Manhattan at Hudson Yards and look at what’s taking place in London, not just the center of London but all – but all around it and I’m forced to admit the future is going to look somewhat different than the past with some hybrid combination of collaborative work in the office and remote work from home when it’s convenient, that sort of suggests that we now have an excess of capacity in office space. Do you see it that way or is this just something that we’re going to grow into and just the nature of working in offices is changing but offices are not going away? CONWAY: Yes. I do think there’s – it’s a very valid point and that in certain cities, you will see access, in others we just don’t, Barry. And quite frankly, as a firm, too, as you know, we have adopted flexibility with our teams that were very fortunate. The technologies in which we created at BlackRock has just become such an amazing enabler, not just to help us as we mention manage the portfolios, help us a better portfolio construction, understand risks, but also to communicate with our clients. I think we’ve all witnessed and experienced a way to have connectivity that allows them to believe that commerce can exist beyond the boundaries of one building. However, I do look at our property portfolios and even the things that we’re doing. Rent collections still being extraordinarily high, occupancy now getting back up to pre-pandemic levels, not in all cities, but in many of the major ones that have reopened. And certainly, the demand for people to just socialize, that the demand for human connectivity is really high. It’s palpable, right? We see it here too. The smiles on people’s faces, they’re back in the office, conversing together, innovating together. When people were feeling unsafe, unquestionably, I think the question marks around the role of office space was really brought to bear. But as were coming through this, as you’ve seen vaccine rates change, as you’ve seen the infection rates fall, as you’ve seen confidence grow, the return to work is really happening and return to work to office work is really happening, albeit, now with degrees of flexibility. So, going back to the – I do believe in certain areas. You’re seeing a surplus. But in many areas you’re absolutely seeing a deficit and the reason I say that, Barry, is we are seeing occupancy in certain building at such a high level. And frankly, the demand for more space being so high, it’s uneven and this goes back to then where do you invest our client’s capital, making sense of those trends, predicting where you will see resilience versus stress and building that into the portfolio of consequences as you – as you better risk manage and mitigate. RITHOLTZ: Very interesting. And so, we are seeing this transition across a lot of different segments of investing, are you seeing any products that were or – or investing styles that was once thought of as primarily institutional that are sort of working their way towards the retail side of things? Meaning going from institutional to accredited to mom-and-pop investors? CONWAY: Well, certainly, in the past, private equity was really an asset class for institutional investors. And I think that’s – that has changed in a very profound way. I mentioned earlier are the regulation has become a more adaptive, but we also have heard, in many respects, in providing this access. And I think the perception of owning and be part of this illiquid investment opportunity set was hard to stomach because many didn’t understand the attributes and what it could bring and I think we’ve been trying to solve for that and what you’re seeing now with – with regulators, understanding that the difference between if we take it quite simply as DD versus DC, the differences between the options you as a participant in a retirement plan are so vastly different that – and I think there’s a broad recognition now that there needs to be more equity with regard to what happens there. And private equity been a really established part of the alternatives marketplace was once, I think, really believed to be an institutional asset class, but albeit now has become much more accessible to wealth. We’ve seen it by structuring activities in Europe working with the regulators. Now, we’re able to provide private equity exposure to clients across the continent and really getting access to what was historically very much an institutional asset class. And I do think the receptivity is extraordinarily high just throughout people’s careers, they have seen wealth been created as a result of engineering a great outcome with great management teams integrate business. And I do believe the receptivity towards private equity is high as an example. In the U.S., too, working with the various intermediaries and being able to wrap now private equity in a ’40 Act fund, for example, is possible. And by being able to deliver that to the many as opposed to the few, we think has been a very good success story. And I think, obviously, appreciated by our clients as well. So, I would look at that were seeing across private equity as well as private credit and quite frankly infrastructure accuracy. You’re seeing now regulation that’s becoming more appreciative of these asset classes, you’re seeing a more – a greater level of openness and willingness to allow for these assets to be part of many people’s experiences across their investment portfolio. And now, with innovation around structures, as an industry, were able to wrap these investments in a way that our clients can really access them. So, think across the board, it probably speaks the innovation that’s happening but I do think that accessibility has changed in a very significant way. But you’ve really seen it happen in private equity first and now that’s expanding across these various other asset classes. RITHOLTZ: Quite intriguing. I know I only have you for a relatively limited period of time, so let’s jump to our favorite questions that we ask all of our guests. Starting with tell us what you’ve been streaming these days. Give us your favorite Netflix or Amazon Prime shows. CONWAY: That is an interesting question, Barry. I don’t a hell of a lot of TV, I got to tell you. I am – I keep busy with three wonderful children and a beautiful wife and between the sports activities. When I do watch TV, I have to tell you I’m addicted to sports and having – I may have mentioned earlier, growing up playing rugby which is not the most common sport in the U.S., I stream nonstop the Six Nations that happens in Europe where Ireland is one of those six nations that compete against each other on an annual basis. Right now, they’re playing a lot of sites that are touring for the southern hemisphere. And to me, the free times I have is either enjoying golf or really enjoying rugby because I think it’s an extraordinary sport. Obviously, very physical, but very enjoyable to watch. And that, that truly is my passion outside of family. RITHOLTZ: Interesting stuff. Tell us a bit about your mentors, who helped to shape your early career? CONWAY: Well, it even goes back to some of the aspects of sports. Playing on a team and being on a field where you’re working together, there’s a strategy involved with that. Now, I used to really appreciate how we approach playing in the All-Ireland League. How we thought about our opponents, how we thought about the structure, how we thought about each individual with on the rugby field and the team having a role. They’re all different but your role. And actually, even starting from an early age, Barry, thinking about, I don’t know, it’s sports but how to build a great team with those various skills, perspective, that can be a really, really powerful combination when done well. And certainly, from an early age, that allowed me to appreciate that – actually, in the work environment, it’s not too different. You surround yourself with just really great people that have high integrity that are empathetic and have a degree of humility that when working together, good things can happen. And I will say, it really started at sports. But I think of today and even in BlackRock, how Larry Fink thinks about the world and I think Larry, truly, is a visionary. And then Rob Kapito who really helps lead the charge across our various businesses. Speaking and conversing with them on a daily basis, getting their perspectives, trying to get inside your head and thinking about the world from their vantage point. To me, it’s a huge thing about my ongoing personal career and development and I really enjoy those moments because I think what you recognize is independent of how much you think you know, there’s so much more to know. And this journey is an ever evolving one where you have to appreciate that you’ll never know everything and you need to be a student every single day. So, I’d probably cite those, Barry, as certainly the two most important mentors in my life today, professionally and personally quite frankly. RITHOLTZ: Really. Very interesting. Let’s talk about what you’re reading these days. Tell us about some of your favorite books and what you’re reading currently? CONWAY: Barry, what I love to read, I love to read history, believe it or not. From a very small country that seems to have exported many, many people, love to understand the history of Ireland. So, there’s so many books. And having three children that have been born in the U.S. and my wife is a New Yorker, trying to help them understand some of their history and what made them what they are. I love delving into Irish history and how the country had moments of greatness and moments of tremendous struggle. Outside of that, I really don’t enjoy science fiction or any of these books. I love reading, you name any paper and any magazine on a daily basis. Unfortunately, I wake at about 4:30, 5 o’clock every day. I spent my first two hours of the day just consuming as much information as possible. I enjoy it. But it’s all – it’s really investment-related magazines, not books. It’s every paper that you could possibly imagine, Barry, and I just – I have a great appreciation for certainly trying to be a student of the world because that’s what we’re operating in an I find it just a very interesting avenue to get an appreciation to for the, not just the opportunities, but the challenges we’re collectively facing as a society but also as a business. RITHOLTZ: I’m with you on that mass consumption of investing-related news. It sounds like you and I have the same a morning routine. Let’s talk about of what sort of advice you would give to a recent college graduate who was interested in a career of alternative investments? CONWAY: Well, the industry has – it’s just gone through such extraordinary growth and the difference, when I’ve started versus today, the career opportunity set has changed so much. And I think I try to remind anyone of our analysts who come into each one of our annual classes, right, as we bring in the new recruits. I think about how talented they are for us, Barry, and how privileged we all are to be in this industry and work for the clients that we do. It’s just such an honor to do that. But I kind of – I try to remind them of that. At the end of the day, whether you’re supporting an institution, that institution is the face of many people in the background and alternatives has really now become such an important part of their experience and we talked about earlier just this challenge of retirement, if we do a good job, these institutions that support the many, they can have, hopefully, a retirement that involves dignity and they can have an ability to do things they so wanted to do as they work so hard over their lives. Getting that that personal connection and allowing for those newbies to understand that that’s the effect that you can have, an alternatives whether it’s private equity, real estate, infrastructure, private credit, hedge funds, all of these now, with the scale at which they’re operating at can allow for a great career. But my advice to them is always don’t forget your career is supporting other people. And that comes directly to how we intersect with wealth channel, it comes indirectly as a result of the institutions. And it’s such a privilege to do that. I didn’t envision when I grew up, as I mentioned, my first job, milking cows and back in a small town in the middle of Ireland that I would be one day leading an alternatives business within BlackRock. I see that as a great privilege. So, for those who are joining afresh, hopefully, try to remind them that it is for all of us and show up with empathy, dignity, compassion, and do the best you can, and hopefully, these people be sure will serve them well. RITHOLTZ: And our final question, what you know about the world of alternative investing today you wish you knew 25 years or so ago when you were first getting started? CONWAY: I think if we had invested much more heavily as an industry in technology, we would not be in the position we are today. And I say that, Barry, from a number of aspects. I mentioned in this shortfall of information our clients are dealing with today. They’re making choices to divest from one asset class to invest in another. To do that and do that effectively, they need great transparency, they needed real-time in many respects, it can’t be just a quarterly line basis. And if we had been better prepared as an industry to provide the technology and the data to help our clients really appreciate what it is they own, how we’re managing the assets on their behalf, I think they would be so much better served. I think we’re very fortunate at this firm to have built a business on the back of technology for albeit 30 plus years and were investing over $1 billion a year in technology as I’m sure you know. But we need to see more of that in the industry. So, the client experience is so important, stop, let’s demystify alternatives. It’s not that alternative. Let’s provide education and data and it’s become so large relative to other asset classes, the need to support, to educate, and transmit information, not data, information, so our client understand it, is at a paramount now. And I think it certainly as an industry, things have to change there. If I knew how big the growth would have been and how prominent these asset classes were becoming, I would oppose so much harder on that front 30 years ago. RITHOLTZ: Thank you, Edwin, for being so generous with your time. We’ve been speaking with Edwin Conway. He is the head of Blackrock Investor Alternatives Group. If you enjoy this conversation, please check out all of our prior discussions. You can find those at iTunes, Spotify, wherever you get your podcast at. We love your comments, feedback and suggestions. Write to us at MIB podcast@Bloomberg.net. You can sign up for my daily reads at ritholtz.com. Check out my weekly column at Bloomberg.com/opinion. Follow me on Twitter, @ritholtz. I would be remiss if I did not thank the crack team that helps put these conversations together each week. Mohammed ph is my audio engineer. Paris Wald is my producer, Michael Batnick is my head of research, Atika Valbrun is our project manager. I’m Barry Ritholtz, you’ve been listening to Masters in Business on Bloomberg Radio.   ~~~   The post Transcript: Edwin Conway appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureNov 22nd, 2021

Vocera (VCRA) Leverages Amazon"s Alexa to Boost Patient Experience

Vocera (VCRA) partners Amazon (AMZN) to build an intelligent solution, Vocera skill for Alexa, which will help patients to seamlessly connect with care team members and families with verbal updates. Vocera Communications, Inc. VCRA has joined forces with multinational technology company — Amazon.com, Inc. AMZN — to enhance the patient experience on the back of an avant-garde voice technology solution by leveraging the latter’s Alexa virtual assistant. Dubbed Vocera skill for Alexa, the offering capitalizes on a set of technologies from Alexa Smart Properties.Of late, the majority of people across the globe have been getting accustomed to using voice technology for day-to-day activities. As a result, healthcare facilities, too, are migrating toward leveraging the benefits of a voice assistant for establishing a simplified and enhanced clinical communications infrastructure.Against this backdrop, the latest partnership underscores Vocera’s commitment to improving patient safety and experience backed by Amazon's Alexa virtual assistant platform. The Vocera skill for Alexa offering will be specifically designed to deliver a hands-free and engaging voice experience to patients, staff members, and families.Without unnecessary interruptions, patients will be able to connect with their families and the right care teams with simple voice requests through the Amazon Echo device present in the patient’s room. In this way, the accessible nature of a voice assistant can help care teams to save time and personalize care while minimizing cognitive overload among clinicians.Further, the verbal updates or voice requests from patients will be delivered to the appropriate team member on their choice of device, which includes Vocera Badge or Vina smartphone application. The Vocera skill for Alexa will identify phrases and keywords from the patient. It will then leverage the intelligent Vocera Engage software to pass on the message to the appropriate person.This helps in streamlining the overall communication workflow, thanks to improved response times, staff collaboration, and patient care. The Vocera skill for Alexa will be HIPAA-eligible for healthcare customers. This combined offering from Vocera and Amazon is likely to be a game-changer for skilled nursing facilities and smart hospitals, revamping the way patients communicate with nurses. The solution can also be used in the hospitality industry to elevate the consumer experience.Vocera’s solutions are specifically designed to increase productivity and improve patient and staff satisfaction with minimized costs. Driven by a resilient business model, the company is widely known for offering the best platform for communication and workflow optimization.Its solutions range from a patent-protected, intelligent enterprise software platform to smartphone applications. Its communication and collaboration solution enables users to connect instantaneously, reduce alarm fatigue, and enhance workflow.It is worth mentioning that Vocera’s solutions are relied upon by care teams in nearly 1,900 healthcare facilities worldwide. With more than two decades of expertise in voice technology and hands-free communication together with a portfolio of more than 150 third-party party clinical integrations, the company continues to widen its ecosystem of technology partners to gain access to the best communication products and services.Vocera currently has a Zacks Rank #3 (Hold). The San Jose, CA-based company’s shares have surged 82.4% compared with the industry’s growth of 23.9% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchHarmonic, Inc. HLIT is a better-ranked stock in the industry, sporting a Zacks Rank #1. The consensus estimate for current-year earnings has been revised 23.1% upward over the past 30 days.Harmonic delivered a trailing four-quarter earnings surprise of 61.1%, on average. The stock has appreciated 72.7% in the past year. HLIT has a long-term earnings growth expectation of 15%.Arista Networks, Inc. ANET is another solid pick for investors, carrying a Zacks Rank #2 (Buy). The consensus estimate for current-year earnings has been revised 3.9% upward over the past 30 days.Arista Networks delivered a trailing four-quarter earnings surprise of 6%, on average. It has rallied 93.9% in the past year. ANET has a long-term earnings growth expectation of 16.7%. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Harmonic Inc. (HLIT): Free Stock Analysis Report Vocera Communications, Inc. (VCRA): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 17th, 2021

A New Generation of Nuclear Reactors Could Hold the Key to a Green Future

On a conference-room whiteboard in the heart of Silicon Valley, Jacob DeWitte sketches his startup’s first product. In red marker, it looks like a beer can in a Koozie, stuck with a crazy straw. In real life, it will be about the size of a hot tub, and made from an array of exotic materials,… On a conference-room whiteboard in the heart of Silicon Valley, Jacob DeWitte sketches his startup’s first product. In red marker, it looks like a beer can in a Koozie, stuck with a crazy straw. In real life, it will be about the size of a hot tub, and made from an array of exotic materials, like zirconium and uranium. Under carefully controlled conditions, they will interact to produce heat, which in turn will make electricity—1.5 megawatts’ worth, enough to power a neighborhood or a factory. DeWitte’s little power plant will run for a decade without refueling and, amazingly, will emit no carbon. ”It’s a metallic thermal battery,” he says, coyly. But more often DeWitte calls it by another name: a nuclear reactor. [time-brightcove not-tgx=”true”] Fission isn’t for the faint of heart. Building a working reactor—even a very small one—requires precise and painstaking efforts of both engineering and paper pushing. Regulations are understandably exhaustive. Fuel is hard to come by—they don’t sell uranium at the Gas-N-Sip. But DeWitte plans to flip the switch on his first reactor around 2023, a mere decade after co-founding his company, Oklo. After that, they want to do for neighborhood nukes what Tesla has done for electric cars: use a niche and expensive first version as a stepping stone toward cheaper, bigger, higher-volume products. In Oklo’s case, that means starting with a “microreactor” designed for remote communities, like Alaskan villages, currently dependent on diesel fuel trucked, barged or even flown in, at an exorbitant expense. Then building more and incrementally larger reactors until their zero-carbon energy source might meaningfully contribute to the global effort to reduce fossil-fuel emissions. At global climate summits, in the corridors of Congress and at statehouses around the U.S., nuclear power has become the contentious keystone of carbon reduction plans. Everyone knows they need it. But no one is really sure they want it, given its history of accidents. Or even if they can get it in time to reach urgent climate goals, given how long it takes to build. Oklo is one of a growing handful of companies working to solve those problems by putting reactors inside safer, easier-to-build and smaller packages. None of them are quite ready to scale to market-level production, but given the investments being made into the technology right now, along with an increasing realization that we won’t be able to shift away from fossil fuels without nuclear power, it’s a good bet that at least one of them becomes a game changer. If existing plants are the energy equivalent of a 2-liter soda bottle, with giant, 1,000-megawatt-plus reactors, Oklo’s strategy is to make reactors by the can. The per-megawatt construction costs might be higher, at least at first. But producing units in a factory would give the company a chance to improve its processes and to lower costs. Oklo would pioneer a new model. Nuclear plants need no longer be bet-the-company big, even for giant utilities. Venture capitalists can get behind the potential to scale to a global market. And climate hawks should fawn over a zero-carbon energy option that complements burgeoning supplies of wind and solar power. Unlike today’s plants, which run most efficiently at full blast, making it challenging for them to adapt to a grid increasingly powered by variable sources (not every day is sunny, or windy), the next generation of nuclear technology wants to be more flexible, able to respond quickly to ups and downs in supply and demand. Engineering these innovations is hard. Oklo’s 30 employees are busy untangling the knots of safety and complexity that sent the cost of building nuclear plants to the stratosphere and all but halted their construction in the U.S. ”If this technology was brand-‘new’—like if fission was a recent breakthrough out of a lab, 10 or 15 years ago—we’d be talking about building our 30th reactor,” DeWitte says. But fission is an old, and fraught, technology, and utility companies are scrambling now to keep their existing gargantuan nuclear plants open. Economically, they struggle to compete with cheap natural gas, along with wind and solar, often subsidized by governments. Yet climate-focused nations like France and the U.K. that had planned to phase out nuclear are instead doubling down. (In October, French President Emmanuel Macron backed off plans to close 14 reactors, and in November, he announced the country would instead start building new ones.) At the U.N. climate summit in Glasgow, the U.S. announced its support for Poland, Kenya, Ukraine, Brazil, Romania and Indonesia to develop their own new nuclear plants—while European negotiators assured that nuclear energy counts as “green.” All the while, Democrats and Republicans are (to everyone’s surprise) often aligned on nuclear’s benefits—and, in many cases, putting their powers of the purse behind it, both to keep old plants open in the U.S. and speed up new technologies domestically and overseas. It makes for a decidedly odd moment in the life of a technology that already altered the course of one century, and now wants to make a difference in another. There are 93 operating nuclear reactors in the U.S.; combined, they supply 20% of U.S. electricity, and 50% of its carbon-free electricity. Nuclear should be a climate solution, satisfying both technical and economic needs. But while the existing plants finally operate with enviable efficiency (after 40 years of working out the kinks), the next generation of designs is still a decade away from being more than a niche player in our energy supply. Everyone wants a steady supply of electricity, without relying on coal. Nuclear is paradoxically right at hand, and out of reach. For that to change, “new nuclear” has to emerge before the old nuclear plants recede. It has to keep pace with technological improvements in other realms, like long-term energy storage, where each incremental improvement increases the potential for renewables to supply more of our electricity. It has to be cheaper than carbon-capture technologies, which would allow flexible gas plants to operate without climate impacts (but are still too expensive to build at scale). And finally it has to arrive before we give up—before the spectre of climate catastrophe creates a collective “doomerism,” and we stop trying to change. Not everyone thinks nuclear can reinvent itself in time. “When it comes to averting the imminent effects of climate change, even the cutting edge of nuclear technology will prove to be too little, too late,” predicts Allison Macfarlane, former chair of the U.S. Nuclear Regulatory Commission (NRC)—the government agency singularly responsible for permitting new plants. Can a stable, safe, known source of energy rise to the occasion, or will nuclear be cast aside as too expensive, too risky and too late? J R Eyerman—The LIFE Picture Collection/ShutterstockLaboratory personnel developing a fusion device in Project Sherwood at the Los Alamos National Laboratory, 1958 Trying Again Nuclear began in a rush. In 1942, in the lowest mire of World War II, the U.S. began the Manhattan Project, the vast effort to develop atomic weapons. It employed 130,000 people at secret sites across the country, the most famous of which was Los Alamos Laboratory, near Albuquerque, N.M., where Robert Oppenheimer led the design and construction of the first atomic bombs. DeWitte, 36, grew up nearby. Even as a child of the ’90s, he was steeped in the state’s nuclear history, and preoccupied with the terrifying success of its engineering and the power of its materials. “It’s so incredibly energy dense,” says DeWitte. “A golf ball of uranium would power your entire life!” DeWitte has taken that bromide almost literally. He co-founded Oklo in 2013 with Caroline Cochran, while both were graduate students in nuclear engineering at the Massachusetts Institute of Technology. When they arrived in Cambridge, Mass., in 2007 and 2008, the nuclear industry was on a precipice. Then presidential candidate Barack Obama espoused a new eagerness to address climate change by reducing carbon emissions—which at the time meant less coal, and more nuclear. (Wind and solar energy were still a blip.) It was an easy sell. In competitive power markets, nuclear plants were profitable. The 104 operating reactors in the U.S. at the time were running smoothly. There hadn’t been a major accident since Chernobyl, in 1986. The industry excitedly prepared for a “nuclear renaissance.” At the peak of interest, the NRC had applications for 30 new reactors in the U.S. Only two would be built. The cheap natural gas of the fracking boom began to drive down electricity prices, razing nuclear’s profits. Newly subsidized renewables, like wind and solar, added even more electricity generation, further saturating the markets. When on March 11, 2011, an earthquake and subsequent tsunami rolled over Japan’s Fukushima Daiichi nuclear power plant, leading to the meltdown of all three of its reactors and the evacuation of 154,000 people, the industry’s coffin was fully nailed. Not only would there be no renaissance in the U.S, but the existing plants had to justify their safety. Japan shut down 46 of its 50 operating reactors. Germany closed 11 of its 17. The U.S. fleet held on politically, but struggled to compete economically. Since Fukushima, 12 U.S. reactors have begun decommissioning, with three more planned. At MIT, Cochran and DeWitte—who were teaching assistants together for a nuclear reactor class in 2009, and married in 2011—were frustrated by the setback. ”It was like, There’re all these cool technologies out there. Let’s do something with it,” says Cochran. But the nuclear industry has never been an easy place for innovators. In the U.S., its operational ranks have long been dominated by “ring knockers”—the officer corps of the Navy’s nuclear fleet, properly trained in the way things are done, but less interested in doing them differently. Governments had always kept a tight grip on nuclear; for decades, the technology was under shrouds. The personal computing revolution, and then the wild rise of the Internet, further drained engineering talent. From DeWitte and Cochran’s perspective, the nuclear-energy industry had already ossified by the time Fukushima and fracking totally brought things to a halt. “You eventually got to the point where it’s like, we have to try something different,” DeWitte says. He and Cochran began to discreetly convene their MIT classmates for brainstorming sessions. Nuclear folks tend to be dogmatic about their favorite method of splitting atoms, but they stayed agnostic. “I didn’t start thinking we had to do everything differently,” says DeWitte. Rather, they had a hunch that marginal improvements might yield major results, if they could be spread across all of the industry’s usual snags—whether regulatory approaches, business models, the engineering of the systems themselves, or the challenge of actually constructing them. In 2013, Cochran and DeWitte began to rent out the spare room in their Cambridge home on Airbnb. Their first guests were a pair of teachers from Alaska. The remote communities they taught in were dependent on diesel fuel for electricity, brought in at enormous cost. That energy scarcity created an opportunity: in such an environment, even a very expensive nuclear reactor might still be cheaper than the current system. The duo targeted a price of $100 per megawatt hour, more than double typical energy costs. They imagined using this high-cost early market as a pathway to scale their manufacturing. They realized that to make it work economically, they wouldn’t have to reinvent the reactor technology, only the production and sales processes. They decided to own their reactors and supply electricity, rather than supply the reactors themselves—operating more like today’s solar or wind developers. “It’s less about the technology being different,” says DeWitte, “than it is about approaching the entire process differently.” That maverick streak raised eyebrows among nuclear veterans—and cash from Silicon Valley venture capitalists, including a boost from Y Combinator, where companies like Airbnb and Instacart got their start. In the eight years since, Oklo has distinguished itself from the competition by thinking smaller and moving faster. There are others competing in this space: NuScale, based in Oregon, is working to commercialize a reactor similar in design to existing nuclear plants, but constructed in 60-megawatt modules. TerraPower, founded by Bill Gates in 2006, has plans for a novel technology that uses its heat for energy storage, rather than to spin a turbine, which makes it an even more flexible option for electric grids that increasingly need that pliability. And X-energy, a Maryland-based firm that has received substantial funding from the U.S. Department of Energy, is developing 80-megawatt reactors that can also be grouped into “four-packs,” bringing them closer in size to today’s plants. Yet all are still years—and a billion dollars—away from their first installations. Oklo brags that its NRC application is 20 times shorter than NuScale’s, and its proposal cost 100 times less to develop. (Oklo’s proposed reactor would produce one-fortieth the power of NuScale’s.) NRC accepted Oklo’s application for review in March 2020, and regulations guarantee that process will be complete within three years. Oklo plans to power on around 2023, at a site at the Idaho National Laboratory, one of the U.S.’s oldest nuclear-research sites, and so already approved for such efforts. Then comes the hard part: doing it again and again, booking enough orders to justify building a factory to make many more reactors, driving costs down, and hoping politicians and activists worry more about the menace of greenhouse gases than the hazards of splitting atoms. Nuclear-industry veterans remain wary. They have seen this all before. Westinghouse’s AP1000 reactor, first approved by the NRC in 2005, was touted as the flagship technology of Obama’s nuclear renaissance. It promised to be safer and simpler, using gravity rather than electricity-driven pumps to cool the reactor in case of an emergency—in theory, this would mitigate the danger of power outages, like the one that led to the Fukushima disaster. Its components could be constructed at a centralized location, and then shipped in giant pieces for assembly. But all that was easier said than done. Westinghouse and its contractors struggled to manufacture the components according to nuclear’s mega-exacting requirements and in the end, only one AP1000 project in the U.S. actually happened: the Vogtle Electric Generating Plant in Georgia. Approved in 2012, its two reactors were expected at the time to cost $14 billion and be completed in 2016 and 2017, but costs have ballooned to $25 billion. The first will open, finally, next year. Oklo and its competitors insist things are different this time, but they have yet to prove it. “Because we haven’t built one of them yet, we can promise that they’re not going to be a problem to build,” quips Gregory Jaczko, a former NRC chair who has since become the technology’s most biting critic. “So there’s no evidence of our failure.” Georg Zinsler—Anzenberger/Redu​xA guided tour in the control room of reactor No. 2 inside the Chernobyl Nuclear Power Plant The Challenge The cooling tower of the Hope Creek nuclear plant rises 50 stories above Artificial Island, New Jersey, built up on the marshy edge of the Delaware River. The three reactors here—one belonging to Hope Creek, and two run by the Salem Generating Station, which shares the site—generate an astonishing 3,465 megawatts of electricity, or roughly 40% of New Jersey’s total supply. Construction began in 1968, and was completed in 1986. Their closest human neighbors are across the river in Delaware. Otherwise the plant is surrounded by protected marshlands, pocked with radiation sensors and the occasional guard booth. Of the 1,500 people working here, around 100 are licensed reactor operators—a special designation given by the NRC, and held by fewer than 4,000 people in the country. Among the newest in their ranks is Judy Rodriguez, an Elizabeth, N.J., native and another MIT grad. “Do I have your permission to enter?” she asks the operator on duty in the control room for the Salem Two reactor, which came online in 1981 and is capable of generating 1,200 megawatts of power. The operator opens a retractable belt barrier, like at an airport, and we step across a thick red line in the carpet. A horseshoe-shaped gray cabinet holds hundreds of buttons, glowing indicators and blinking lights, but a red LED counter at the center of the wall shows the most important number in the room: 944 megawatts, the amount of power the Salem Two reactor was generating that afternoon in September. Beside it is a circular pattern of square indicator lights showing the uranium fuel assemblies inside the core, deep inside the concrete domed containment building a couple hundred yards away. Salem Two has 764 of these constructions; each is about 6 inches sq and 15 ft. tall. They contain the source of the reactor’s energy, which are among the most guarded and controlled materials on earth. To make sure no one working there forgets that fact, a phrase is painted on walls all around the plant: “Line of Sight to the Reactor.” As the epitome of critical infrastructure, this station has been buffeted by the crises the U.S. has suffered in the past few decades. After 9/11, the three reactors here absorbed nearly $100 million in security upgrades. Everyone entering the plant passes through metal- and explosives detectors, and radiation detectors on the way out. Walking between the buildings entails crossing a concrete expanse beneath high bullet resistant enclosures (BREs). The plant has a guard corp that has more members than any in New Jersey besides the state police, and federal NRC rules mean that they don’t have to abide by state limitations on automatic weapons. The scale and complexity of the operation is staggering—and expensive. ”The place you’re sitting at right now costs us about $1.5 million to $2 million a day to run,” says Ralph Izzo, president and CEO of PSEG, New Jersey’s public utility company, which owns and operates the plants. “If those plants aren’t getting that in market, that’s a rough pill to swallow.” In 2019, the New Jersey Board of Public Utilities agreed to $300 million in annual subsidies to keep the three reactors running. The justification is simple: if the state wants to meet its carbon-reduction goals, keeping the plants online is essential, given that they supply 90% of the state’s zero-carbon energy. In September, the Illinois legislature came to the same conclusion as New Jersey, approving almost $700 million over five years to keep two existing nuclear plants open. The bipartisan infrastructure bill includes $6 billion in additional support (along with nearly $10 billion for development of future reactors). Even more is expected in the broader Build Back Better bill. These subsidies—framed in both states as “carbon mitigation credits”—acknowledge the reality that nuclear plants cannot, on their own terms, compete economically with natural gas or coal. “There has always been a perception of this technology that never was matched by reality,” says Jaczko. The subsidies also show how climate change has altered the equation, but not decisively enough to guarantee nuclear’s future. Lawmakers and energy companies are coming to terms with nuclear’s new identity as clean power, deserving of the same economic incentives as solar and wind. Operators of existing plants want to be compensated for producing enormous amounts of carbon free energy, according to Josh Freed, of Third Way, a Washington, D.C., think tank that champions nuclear power as a climate solution. “There’s an inherent benefit to providing that, and it should be paid for.” For the moment, that has brought some assurance to U.S. nuclear operators of their future prospects. “A megawatt of zero-carbon electricity that’s leaving the grid is no different from a new megawatt of zero carbon electricity coming onto the grid,” says Kathleen Barrón, senior vice president of government and regulatory affairs and public policy at Exelon, the nation’s largest operator of nuclear reactors. Globally, nations are struggling with the same equation. Germany and Japan both shuttered many of their plants after the Fukushima disaster, and saw their progress at reducing carbon emissions suffer. Germany has not built new renewables fast enough to meet its electricity needs, and has made up the gap with dirty coal and natural gas imported from Russia. Japan, under international pressure to move more aggressively to meet its carbon targets, announced in October that it would work to restart its reactors. “Nuclear power is indispensable when we think about how we can ensure a stable and affordable electricity supply while addressing climate change,” said Koichi Hagiuda, Japan’s minister of economy, trade and industry, at an October news conference. China is building more new nuclear reactors than any other country, with plans for as many as 150 by the 2030s, at an estimated cost of nearly half a trillion dollars. Long before that, in this decade, China will overtake the U.S. as the operator of the world’s largest nuclear-energy system. Francesca Todde—contrasto/Redux Civaux nuclear power plant, in Civaux, France, May 2018 The future won’t be decided by choosing between nuclear or solar power. Rather, it’s a technically and economically complicated balance of adding as much renewable energy as possible while ensuring a steady supply of electricity. At the moment, that’s easy. “There is enough opportunity to build renewables before achieving penetration levels that we’re worried about the grid having stability,” says PSEG’s Izzo. New Jersey, for its part, is aiming to add 7,500 megawatts of offshore wind by 2035—or about the equivalent of six new Salem-sized reactors. The technology to do that is readily at hand—Kansas alone has about that much wind power installed already. The challenge comes when renewables make up a greater proportion of the electricity supply—or when the wind stops blowing. The need for “firm” generation becomes more crucial. “You cannot run our grid solely on the basis of renewable supply,” says Izzo. “One needs an interseasonal storage solution, and no one has come up with an economic interseasonal storage solution.” Existing nuclear’s best pitch—aside from the very fact it exists already—is its “capacity factor,” the industry term for how often a plant meets its full energy making potential. For decades, nuclear plants struggled with outages and long maintenance periods. Today, improvements in management and technology make them more likely to run continuously—or “breaker to breaker”—between planned refuelings, which usually occur every 18 months, and take about a month. At Salem and Hope Creek, PSEG hangs banners in the hallways to celebrate each new record run without a maintenance breakdown. That improvement stretches across the industry. “If you took our performance back in the mid-’70s, and then look at our performance today, it’s equivalent to having built 30 new reactors,” says Maria Korsnick, president and CEO of the Nuclear Energy Institute, the industry’s main lobbying organization. That improved reliability has become its major calling card today. Over the next 20 years, nuclear plants will need to develop new tricks. “One of the new words in our vocabulary is flexibility,” says Marilyn Kray, vice president of nuclear strategy and development at Exelon, which operates 21 reactors. “Flexibility not only in the existing plants, but in the designs of the emerging ones, to make them even more flexible and adaptable to complement renewables.” Smaller plants can adapt more easily to the grid, but they can also serve new customers, like providing energy directly to factories, steel mills or desalination plants. Bringing those small plants into operation could be worth it, but it won’t be easy.”You can’t just excuse away the thing that’s at the center of all of it, which is it’s just a hard technology to build,” says Jaczko, the former NRC chair. “It’s difficult to make these plants, it’s difficult to design them, it’s difficult to engineer them, it’s difficult to construct them. At some point, that’s got to be the obvious conclusion to this technology.” But the equally obvious conclusion is we can no longer live without it. “The reality is, you have to really squint to see how you get to net zero without nuclear,” says Third Way’s Freed. “There’s a lot of wishful thinking, a lot of fingers crossed.”.....»»

Category: topSource: timeNov 16th, 2021

Cannabis ETFs Soar on Republican-Led Legalization Bill

Cannabis ETFs have gained momentum lately following the reports of a Republican-led bill, which is seeking to legalize marijuana at the federal level in the United States. Cannabis ETFs, which have been on a difficult run this year, gained momentum lately following the reports of a Republican-led bill, which is seeking to legalize marijuana at the federal level in the United States.The funds outperformed the market last week with Global X Cannabis ETF POTX leading the rally, climbing 17.4%. AdvisorShares Pure US Cannabis ETF MSOS, AdvisorShares Pure Cannabis ETF YOLO, Amplify Seymour Cannabis ETF CNBS and ETFMG Alternative Harvest ETF MJ gained 14%, 12.8%, 10.9% and 10.9%, respectively (see: all the Marijuana ETFs here).  South Carolina House Representative Nancy Mace has drafted a bill, as reported by Marijuana Moment, that would deschedule cannabis federally. Removing cannabis from Schedule I of the Controlled Substances Act would legalize it in the United States. According to Marijuana Moment's reporting, the bill would legalize cannabis without changing any of the existing state-level markets or regulations. It would legalize and regulate marijuana in a manner similar to how alcohol is regulated, and will institute a federal tax of 3.75% on cannabis, which would be levied on top of any state taxes.Though the bill is not being formally introduced in Congress, it could be a game changer for the industry, aiming to take cannabis market worldwide sales to $51 billion by 2025. This optimism has driven the ETFs higher.Let’s delve into each of the ETFs in detail below:Global X Cannabis ETFGlobal X Cannabis ETF seeks to invest in companies across the cannabis industry. This includes companies involved in the legal production, growth and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis, cannabidiol, or other related uses including extracts, derivatives or synthetic versions. Global X Cannabis ETF tracks the Cannabis Index and holds 26 stocks in its basket. The higher concentration of POTX is on the top five firms (read: Wave of Solid Q3 Earnings Push Pharma ETFs Higher).In terms of country exposure, Canada takes the largest share at 77.9% followed by 20.2% in the United States. Global X Cannabis ETF has accumulated $123 million in its asset base and trades in an average daily volume of 142,000 shares. Expense ratio of POTX comes in at 0.51%.AdvisorShares Pure US Cannabis ETFAdvisorShares Pure US Cannabis ETF is the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators. MSOS holds 27 securities in its basket with a double-digit concentration on the top two firms. AdvisorShares Pure US Cannabis ETF is highly skewed toward MSOS in terms of sector, making up for 86.5% of the portfolio.   MSOS has amassed $1 billion in its asset base while trades in an average daily volume of more than a million shares. AdvisorShares Pure US Cannabis ETF charges 74 bps in annual fees.AdvisorShares Pure Cannabis ETFAdvisorShares Pure Cannabis ETF is also the actively managed ETF with a dedicated cannabis investment mandate domiciled in the United States. YOLO seeks long-term capital appreciation by investing in both domestic and foreign cannabis equity securities. AdvisorShares Pure Cannabis ETF holds a basket of 32 stocks with a double-digit exposure to the top three firms. American firms making up for 61.4% of the portfolio, followed by 28.7% share in the Canadian firms.AdvisorShares Pure Cannabis ETF has gathered $246.9 million in its asset base and charges 75 bps in annual fees. YOLO trades in an average daily volume of 104,000 shares.Amplify Seymour Cannabis ETFAmplify Seymour Cannabis ETF is an actively managed fund which invests at least 80% of its assets in securities of companies with 50% or more of their revenues from the cannabis and hemp ecosystem. CNBS holds 34 securities in its basket with each making up for not more than 8.3% of assets. Amplify Seymour Cannabis ETF provides 48.5% exposure to American firms and 47.4% to Canadian firms (read: 5 Top-Ranked ETFs Outperforming to Start November).Cultivation and retail is the top industry in the CNBS basket at 31.7% while investing & finance, agricultural technology and real estate round off the next three spots with double-digit exposure each. With AUM of $109 million, Amplify Seymour Cannabis ETF charges 75 bps in annual fees and trades in an average daily volume of 64,000 shares.ETFMG Alternative Harvest ETFETFMG Alternative Harvest ETF is the first and world’s largest ETF focusing on the global cannabis/marijuana industry. MJ tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. ETFMG Alternative Harvest ETF holds 35 securities in its basket with a moderate concentration across top firms.American firms account for 46.4% of the MJ portfolio while Canadian firms make up for 40.2% share. ETFMG Alternative Harvest ETF has AUM of $1.1 billion and trades in a solid volume of around 1.2 million shares. It charges 75 basis points in annual fees.What Lies Ahead?Given the rising number of countries decriminalizing and legalization, cannabis stocks are set to soar. According to Technavio Research Reports, the legal cannabis market is expected to grow at a record CAGR of 21.39% from 2021 to 2025.With 10 newly legalized states slated to begin selling cannabis in 2021 or 2022, the legal market is projected to pull in $43 billion by 2025, per the new study by top cannabis market researcher New Frontier Data. The researcher cited a surge in legal market spending as well as the conversion of existing illicit market consumer spending to legal regulated sources as reasons for the increase in consumer demand. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ETFMG Alternative Harvest ETF (MJ): ETF Research Reports AdvisorShares Pure Cannabis ETF (YOLO): ETF Research Reports Amplify Seymour Cannabis ETF (CNBS): ETF Research Reports Global X Cannabis ETF (POTX): ETF Research Reports AdvisorShares Pure US Cannabis ETF (MSOS): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 15th, 2021

US Nuclear Unit In Germany Reactivates With "Dark Eagle" Hypersonic Missiles

US Nuclear Unit In Germany Reactivates With "Dark Eagle" Hypersonic Missiles Much attention lately has been focused on a series of Chinese hypersonic weapons tests. Let's now shift our attention to the US and Russia, where the Pentagon has reactivated a nuclear unit, based in Mainz-Kastel, western Germany, that will soon be able to launch 4,000 mph hypersonic weapons aimed at Moscow, according to The Sun.  For the first time in decades, the 56th Artillery Command is armed with "Dark Eagle" long-range hypersonic missiles that can strike Moscow in 21 minutes and 30 seconds. The last time the command was fully operational was in 1991, right before the Soviet Union collapsed.  "From a blank piece of paper in March 2019, we, along with our industry partners and joint services, delivered this hardware in just over two years. Now, Soldiers can begin training," Lt. Gen. L. Neil Thurgood said in a statement. The reactivation reveals increasing concerns among Pentagon officials that Russia has outgunned the US and NATO in Europe with advanced hypersonic weapons. There are mounting issues in the region where Russia has positioned 100k troops on the Ukraine border, and tensions between Russian-backed Belarus and Poland have resulted in waves of migrants attempting to storm Europe.  The commanding general of the artillery unit, General Stephen Maranian, said the reactivation would "provide the US Army Europe and Africa with significant capabilities in multi-domain operations." Separate from Dark Eagle, the 56th Artillery Command will also receive an array of weapons, including the ground-launched version of the Tomahawk cruise missile. Hypersonic missiles could be a game-changer for NATO because the world's most advanced missile defense shields have trouble shooting down these weapons due to high speeds and an unpredictable flight path.  China and Russia are both ahead in the hypersonic race when compared to the US. The FT released a series of reports last month that left US intelligence and military officials stunned by Chinese hypersonic tests.  Washington's hypersonic missile plan for Germany suggests an inevitable Cold War is ahead, one where the development of hypersonic weapons and fifth-generation fighter jets will be a competition among global superpowers.  Tyler Durden Mon, 11/15/2021 - 04:15.....»»

Category: blogSource: zerohedgeNov 15th, 2021

US Nuclear Unit in Germany Reactivates With "Dark Eagle" Hypersonic Missiles 

US Nuclear Unit in Germany Reactivates With "Dark Eagle" Hypersonic Missiles  Much attention lately has been focused on a series of Chinese hypersonic weapons tests. Let's now shift our attention to the US and Russia, where the Pentagon has reactivated a nuclear unit, based in Mainz-Kastel, western Germany, that will soon be able to launch 4,000 mph hypersonic weapons aimed at Moscow, according to The Sun.  For the first time in decades, the 56th Artillery Command is armed with "Dark Eagle" long-range hypersonic missiles that can strike Moscow in 21 minutes and 30 seconds. The last time the command was fully operational was in 1991, right before the Soviet Union collapsed.  "From a blank piece of paper in March 2019, we, along with our industry partners and joint services, delivered this hardware in just over two years. Now, Soldiers can begin training," Lt. Gen. L. Neil Thurgood said in a statement. The reactivation reveals increasing concerns among Pentagon officials that Russia has outgunned the US and NATO in Europe with advanced hypersonic weapons. There are mounting issues in the region where Russia has positioned 100k troops on the Ukraine border, and tensions between Russian-backed Belarus and Poland have resulted in waves of migrants attempting to storm Europe.  The commanding general of the artillery unit, General Stephen Maranian, said the reactivation would "provide the US Army Europe and Africa with significant capabilities in multi-domain operations." Separate from Dark Eagle, the 56th Artillery Command will also receive an array of weapons, including the ground-launched version of the Tomahawk cruise missile. Hypersonic missiles could be a game-changer for NATO because the world's most advanced missile defense shields have trouble shooting down these weapons due to high speeds and an unpredictable flight path.  China and Russia are both ahead in the hypersonic race when compared to the US. The FT released a series of reports last month that left US intelligence and military officials stunned by Chinese hypersonic tests.  Washington's hypersonic missile plan for Germany suggests an inevitable Cold War is ahead, one where the development of hypersonic weapons and fifth-generation fighter jets will be a competition among global superpowers.  Tyler Durden Mon, 11/15/2021 - 04:15.....»»

Category: blogSource: zerohedgeNov 15th, 2021

5 New And Upcoming Waves Of Innovation In E-Commerce

Modern business is all about technology, so innovation and quick adoption is the only way to succeed. Consumer behavior is changing fast thanks to the easily available Internet via mobile phone. E-commerce has revolutionized the way people buy and sell goods and services. The impact of disruption is visible in brick-and-mortar stores across the world. […] Modern business is all about technology, so innovation and quick adoption is the only way to succeed. Consumer behavior is changing fast thanks to the easily available Internet via mobile phone. E-commerce has revolutionized the way people buy and sell goods and services. The impact of disruption is visible in brick-and-mortar stores across the world. Startups with innovative technologies like marketing insight, consumer behavior analysis, simplifying supply-chain and logistics, virtual reality, or blockchain technology to make transactions secure and straightforward are turning unicorns in just 2-3 years. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more The global e-commerce market is expected to reach US$6.07 trillion in 2024, with projected annual growth of over 11% during 2020-24. Besides economic growth aided by smart-phone linked behavioral changes, buying behavior of millennials, the most important factors driving the e-commerce industry are the simplification of the payment, third party logistics, and tech-enabled improvement of operational efficiency. Although logistics and data security challenges remain, several startups are coming up with innovative solutions to revolutionize the way people shop and businesses operate, focusing on making the whole process simple, enjoyable, personal, and of course more cost-effective. The last decade in the e-commerce space was all about simplifying the onboarding of vendors and attracting customers through tempting flash sales. The goal might still be the same, but the effectiveness of the traditional approach is declining. Some of the new and upcoming waves of innovation in the e-commerce space to attract and engage customers, and make business more efficient and profitable are: Integrated CRM Frankly, customer acquisition isn’t a big challenge in the e-commerce space. Of course, products and services should be competitive, both quality and cost-wise, to retain customers and bring more customers through word-of-mouth. But, almost all vendors struggle to maintain quality data to build and strengthen the relationship with clients. Smart data capturing and a simple interface could be a game-changer as businesses are looking for something that integrates the e-commerce process comprising inventory management, order fulfillment, dispatch, follow-ups, and of course, marketing and targeting. So, companies involved in finding innovative solutions to simplify the process will ride the unicorn wave in the coming times. Geo-Focused Selling Geo-targeting customers through push notification aren’t new, as Google has been successfully doing so for a ,long to show prospects contextually relevant ads. The next wave of innovation in this space could be synchronizing real-world experience with the online world. The idea revolves around showing something more appropriate and intriguing when the customer is perceptually closer to reality. If a person is in a salon or spa, and s/he gets a notification about something related or more tempting like hot deals, the chances of conversion rate increases manifold. So, capturing customers’ movement data and pairing them with possible visual triggers and showing quality results could revolutionize the way people shop online, especially when people don’t have free time to explore the best possible products and services. Making Delivery Near Real-Time The biggest possible hurdle for the e-commerce industry is minimizing the time between buying and delivery. People love to touch and hold products, and studies suggest that the closer the product is to customers, the quicker the buying decision is. Logistics companies working with e-commerce companies can make it big if they could make it possible to deliver near real-time. The gap between buying and delivery time is decreasing, but it is still too big to satisfactorily meet customers’ satisfaction. Some companies are using blockchain technology to enhance logistic and shipping efficiency. Imagine a scenario when a vendor could swap orders with the nearest vendor to be delivered instantly at far less cost. Simplify Global Trade Ecommerce allows one to tap the vast global market, but challenges of cost, communication, and trust make it difficult for small players to explore the immense opportunity. Reddocoin has developed a highly innovative blockchain-powered, fully automated ecosystem to simplify dropshipping. With a focus on eliminating unnecessary hurdles, Reddocoin is making dropshipping borderless with blockchain-based highly secure payment procedures, with exchangeable native Reddo tokens. Gamification Information bombardment is reality, so is the resistance to such non-contextual information. The world is slowly moving from virtual socialization to personalization. So the next big innovative wave could be creating something that could be less direct, very close to perceptual needs, and delivered in personal space without breaching the sense of privacy. Pinduoduo is already changing the e-commerce landscape in China by introducing gaming in the shopping journey, of course with elements of fun, interaction, and highly gratifying rewards. Another next big innovation happening in the e-commerce space is the smart use of augmented reality to help people experience products virtually through AR, VR, and MR. Facebook’s foray into metaverse is a big clue how online shopping is going to evolve in the coming years. Frankly, data collection is not an issue anymore. It is making those data points usable and synchronizing them for effective marketing and positioning that is challenging. Ecommerce players, big or small, are using raw data to target prospects blindly. Imagine a scenario that delivers relevant information, to target based on need and mood, and how it will drastically cut customer acquisition costs. Most importantly, personalized information with customized solutions will make consumers feel special, with added benefits of time, energy, and money-saving. No matter what, ultimately, it is all about winning consumers’ trust, so the e-commerce industry needs to constantly incubate ideas and develop technologies that could help them reach the target audience easily at the minimum possible cost. Updated on Nov 12, 2021, 1:37 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkNov 12th, 2021

How Ryan Kaji Became the Most Popular 10-Year-Old in the World

In human years, Ryan Kaji is 10. In YouTube views, he’s 48,597,844,873. If, in our digital age, a person’s life can be measured by their online footprint, Ryan’s is the size of a brachiosaur’s, which, as a lot of Ryan’s fans know, is gargantuan. Another way of putting it is that even if every one… In human years, Ryan Kaji is 10. In YouTube views, he’s 48,597,844,873. If, in our digital age, a person’s life can be measured by their online footprint, Ryan’s is the size of a brachiosaur’s, which, as a lot of Ryan’s fans know, is gargantuan. Another way of putting it is that even if every one of Ryan’s YouTube views were just 30 seconds, he has been watched 4,500 times longer than he has been alive. There’s a sacred text that talks about an era of peace and harmony, where lions lie down with lambs. The kicker is that a child is in charge of it all. Except for the part about peace and harmony, we are in an age where a child does indeed rule a significant subsection of the Internet. Ryan has been the highest paid YouTube star for three years straight, partly because he has nine channels on the platform. His revenue last year, according to Forbes, was about $30 million. Most of that was from his far-flung merchandise empire: he (or his parents) has lent his name to 1,600 licensed products in 30 countries, including Skechers, pajamas, Roblox, bedding, watches, sporting goods, water bottles, furniture, toothpaste and, of course, toys. [time-brightcove not-tgx=”true”] As well as a legion of YouTube videos, Ryan has shows on Nick Jr. (the Emmy-nominated Ryan’s Mystery Playdate) and Amazon Kids+ (Super Spy Ryan) and his own streaming channel. His animated superhero alter ego, Red Titan, will appear for the second time as a Macy’s Thanksgiving Day Parade balloon. “Ryan is bar none the crown prince of YouTube,” says Quynh Mai, founder of Moving Image & Content, a creative agency for digital content. (She does not represent him.) Yuki Iwamura—Sputnik/APThe Red Titan balloon will float in its second parade this Thanksgiving   How did we get to a place where a person can be the linchpin of a media empire before he has armpit hair? And of all the exuberant folks on YouTube, why has this kid raked in the most cash? Part of the answer is that this is no ordinary child, but another part is that Ryan’s rise speaks volumes about the way entertainment, business, technology and family life have changed in the past decade. Ryan’s prominence, and the existence of the genre of human known as “kidfluencer,” is a source of consternation to many parents, authorities and child-development experts. Four of the 10 U.S. YouTube channels with the most subscribers are geared toward young children. Legislation has recently been introduced in the Senate that may curtail the activities of Ryan and his fellow YouTube toycoons. But his ascent has also shown how profoundly childhood has been and is being reshaped, and that it may be too late to put the jack back in the box. One thing that everyone agrees on is that much of Ryan’s fame was a result of timing. He was about 3½ in 2015 when he asked his mom Loann Guan—the family changed its name to Kaji to preserve some anonymity as they got famous—if he could be on YouTube like other kids. Loann, 37, was a science teacher on spring break looking for kid-friendly activities. She and her husband Shion, 34, had watched YouTube in college and had a grasp of the format and how the algorithm worked. Read More: Meet TIME’s First-Ever Kid of the Year At the same time, technological changes were making online video more accessible to kids. “It was like a perfect storm when Ryan came in,” says Mai. Laptop prices had dropped enough that people were moving away from tablets. The YouTube Kids app had launched. “Parents gave their iPads to their children as entertainment devices, and that made it so easy for kids to navigate the Internet,” she says. Feeling stretched in terms of childcare, lots of parents needed to keep their kids occupied. “When young children see lots of colors and sounds and movement on a screen, it’s almost like a mobile above the crib,” says Dr. Jenny Radesky, a developmental behavioral pediatrician at the University of Michigan. “They calm down. They focus. Studies have shown that it often leads to less body movement.” The period after 2015 also marked a growth phase for the so-called creator economy. With the advance of digital ad technology, advertisers realized they could get more traction from microtargeting followers of a regular person—an influencer—than from a celebrity. Among the most popular figures when the Kajis began were the unboxers, people who filmed themselves opening shoes or makeup, or kids opening toys. So that’s what Loann and Ryan did. Ironically, Ryan had not really liked playing with toys as a baby, except one: a remote-control car, which, his dad says, he could more or less operate by the age of 6 months. This meant every relative gave him toy cars. When the unboxing trend spun off into the Giant Egg trend, Loann hid those cars in a papier-mâché egg she’d made. The resulting video, “GIANT Lightning McQueen Egg Surprise with 100+ Disney Cars Toys,” shot Ryan’s ToysReview, as the channel was then called, into the stratosphere. “That one video became his most popular video on our channel for the next two years,” says Shion. It currently has more than a billion views. At first, strange comments below the video alarmed them. “It was all gibberish,” says Shion. Then he saw Ryan typing random letters beneath videos and realized other kids were doing that too. Some of them may not have spoken English. “We noticed a huge percentage of the viewership coming from Asia,” says Shion. Ryan’s channel had launched just as YouTube was spreading to Asia, and videos like Ryan’s filled a void that TV had overlooked. Shion was born in Japan, and Loann in Vietnam. “For a lot of minorities,” says Mai, “YouTube was the place where you saw people like you.” Read More: I Raised Two CEOs and a Doctor. These Are My Secrets to Parenting Successful Children Ryan’s ToysReview quickly became one of YouTube’s most popular channels. By 2016, both parents had quit their jobs to make videos full time. Shion is a Cornell-educated structural engineer, which may be why he sensed the danger of having Ryan, just 5, carry the bulk of the show. He beefed up the production team to avoid burnout and had animators create characters based on Ryan’s personality for more content. Shion and Loann also appear in the videos and play with toys and games on their own channel. There may be a place in which one small family can produce so much intellectual property and be left in peace, but that place is not the USA, circa 2017. Ryan caught the eye of Chris Williams, who as a former Disney and Maker Studios executive had watched media habits change in real time. “I saw linear television’s ratings fall off a cliff,” he says. “I saw kids and family audiences flocking to YouTube.” His experience at Disney had also taught him about the power of building a franchise. “There are stars, characters and intellectual property on YouTube that have bigger audiences than the entire Disney Channel network. Why are we not thinking about them in the same way?” In 2017, he started Pocketwatch to do licensing deals with YouTube stars, and the Kajis, who had formed their own production company, Sunlight Entertainment, were among its first partners. Read More: How Dr. Becky Became the Millennial Parenting Whisperer The move came just in time. Merchandisers were not the only ones who noticed how much content was directed at the very young. Parents, child-development experts, media watchdogs and eventually legislators did too, and many didn’t love what they saw. There were videos of adults playing with toys in inappropriate ways. Some of the families on YouTube fell apart. Others seemed to be treating children badly to draw clicks. Advertisers pulled back. YouTube removed comments sections from and kept ads off some videos. It wasn’t enough. In 2019, YouTube and its parent company Google paid $170 million to settle allegations by the Federal Trade Commission (FTC) and the New York State attorney general that it collected data about minors and violated the Children’s Online Privacy Protection Act. By 2020, YouTube required creators to specify whether their videos were for kids and stopped feeding personalized ads to those that were. Many kid-centric channels lost the bulk of their revenue. But thanks to the merch deals, the Kajis sailed on. Williams says the franchise is his company’s biggest earner. The reforms may have lessened the problem of advertising to children, but they did nothing to change the thorny fact that watching endless hours of a child opening toys is of dubious—at best—educational or social-development value. There’s not much definitive research on what that kind of media diet does to a developing brain, but the small amount out there is dismaying. In a study out of the University of Colorado, Boulder, 78% of parents reported their kids watched unboxing videos on a regular basis, with almost 17% estimating it at between three and nine hours per week. “The more time a child spends watching unboxing videos,” says Harsha Gangadharbatla, an associate professor of advertising, who presented the paper at a journalism conference in 2019, “the more likely they are to ask for things and throw tantrums if the parents weren’t purchasing those things.” Studies have shown that children form para-social relationships with the media figures they encounter. “They’re dealing with a developing brain that is figuring out the world,” says Dr. Michael Rich, a pediatrician and the director of the Boston Children’s Hospital’s Digital Wellness Lab. “And if one of the very powerful inputs into that developing brain is ‘Look at how happy Ryan is with his toy!’ of course they’re going to say, ‘I want that.’” Read More: I Was Constantly Arguing With My Child. Then I Learned the “TEAM” Method of Calmer Parenting Just before YouTube and Google paid the fine, the nonprofit Truth in Advertising (TINA) filed a complaint with the FTC against the Kajis—who then changed the name of their channel from Ryan’s ToyReview to Ryan’s World. The group had found that Ryan played with toys that would appeal to kids 5 years of age or younger in 90% of the channel’s 200 most popular videos. TINA claimed the sponsored videos were not clearly enough delineated. “Sometimes, they weren’t adequately disclosing such that an adult would know, and other times, it’s just the fact that this vulnerable population of toddlers cannot differentiate between organic content and ads,” says Bonnie Patten, TINA’s executive director. (The FTC does not talk about pending investigations.) Richard Drew—APRyan’s family made merchandising deals early and often, with 1,600 products to date Williams says the Kaji family has been unfairly singled out because they offer the biggest target. He points out that they have shifted to more educational content, with science experiments and travel videos. At the same time, he is open to greater research and regulation. “I worry about the effects of all of it. Not just what we see on YouTube and other platforms, but movies and TV,” he says. “Nobody wants to do the work around researching this stuff. They just want to make proclamations: ‘Hey, it’s different from what I grew up on. It must be bad.’” The Kajis maintain that they “follow the guidelines” for labeling their content, but, says Loann, “if I could do it over, I would try to incorporate more of the educational component right from the get-go.” A legal team screens their videos, but they do not have a child-development expert on staff. One solution would be to take down the old unboxing videos and stop putting up new ones. After all, Sunlight Entertainment releases 25 new videos a week across its channels. But surveys show that in the U.S., “the No. 1 thing for our channel is that they still want Ryan playing with toys,” says Shion. In August, however, YouTube announced that it would remove “overly commercial content” from the YouTube Kids app and mark sponsored videos more clearly. And on Sept. 30, as Congress began to take a closer look at social media companies, Democratic Senators Edward Markey of Massachusetts and Richard Blumenthal of Connecticut reintroduced the KIDS Act, which would force sites like YouTube to stop recommending unboxing videos for kids. YouTube declined to answer specific questions from TIME, but pointed to a raft of policies, developed with child-development experts, intended to keep young viewers safe. Nevertheless, Pandora has already completed her unboxing. Ryan’s branded toys are everywhere. And he’s not alone. There’s a new crop of stars coming, on Tik Tok, Instagram and YouTube. Vlad, 8, and Niki, 6, Russian-born brothers who live in Florida, released their first toy figures in June. Nastya, 7, also a Russian-born Floridian, launches her dolls Nov. 15. Kidfluencers no longer have to hawk toys; they can just become them. Any discerning viewer who watches Ryan’s videos notices within a minute that they don’t offer much in the way of entertainment. The production is amateurish. There’s no narrative arc. This is intentional. The Kajis are not artists; they’re parents. They started making videos, they say, because their kid wanted to and was good at it. “We don’t really do multiple takes,” says Loann. “What I get from him, that’s what I’m going to use.” The DIY nature of the videos also mimics, they hope, what it’s like to go on a playdate. “We don’t want the viewers to watch our videos one after the other,” says Shion. “What we ideally want is kids to watch our video and then that inspires them to have an idea for what they want to do and they put down their iPad.” At the onset of the pandemic, they put up several videos of Ryan doing homework, so kids could feel like they were studying with a friend. Brendan George Ko for TIMERyan-themed products generated about $250 million in retail sales in 2020, according to Pocketwatch It’s difficult to ascertain if kids do indeed go play after watching the videos. The fact that some Ryan’s World videos are hours long suggests that a certain amount of sedentariness is allowed, if not encouraged. Many parents loathe them; they overwhelmingly garner one-star reviews on sites like Common Sense Media. It was Ryan’s World that caused Mike Lutringer, in Houston, to swear off YouTube Kids forever. When his second daughter was born and he and his wife needed to attend to her, he’d put on an educational Ryan video for his older child. “But very rapidly it’ll transition over to marketing and sales and reviews,” he says. “You can see how they’ve designed it to really capture the attention of the child.” Dylana Carlson, in Galesburg, Ill., on the other hand, says that during the pandemic, her two children would watch Ryan or another kidfluencer and then try to play the way they did. Occasionally they’d ask for a playdate with their Internet friend. “I think that they assume that they can just go meet these kids,” she says. “I have thought about this stuff, like, Is that depressing? Or is that weird? But corporations pay to have a dress-up Spider-Man come to the grocery store. How is this different?” Quynh Mai, the marketer, thinks this is one of the secrets of Ryan’s success. “These kids, I think, are really lonely,” she says. “Ryan provides the emotional connection.” As online friends go, Ryan is a Hallmark-level cherub. He appears to have a bottomless vat of enthusiasm for any toy/room/situation he encounters. In interviews, he is cheerful and eager, with an age-appropriate inability to be self-reflective. He loves school, especially math! He swims, plays soccer, does tae kwon do, but gymnastics is his favorite! He hates when he can’t find his lunch box! If he could have any superpower, it would be super speed! When he grows up, he wants to be a “game developer or a comedian who is a YouTuber who makes funny videos!” During the pandemic, Loann homeschooled the kids, and when the Kajis tested Ryan to see if he had fallen behind, they found he was several grades ahead. One of the reasons they moved to Hawaii this year is for a more academically challenging school than his public school in Houston. The other, interestingly, is that they felt the kids were spending too much time on screens. In Hawaii, they take more walks, which Ryan at first found exhausting. He’s also learning piano and Japanese, but he’s not crazy about either. Bea Oyster for TIMEThe Kaji family—Loann, Emma, Shion, Ryan and Kate—moved to Hawaii during the pandemic, partly to get the kids off their screens There are two ways to look at the Kaji parents. One is that they have dragooned their offspring into living out their lives on camera to get rich. The other, the one they present, is that they stumbled into a world where their child became a star and they tried to keep up. Ryan’s onscreen ability, they say, is as big a surprise to them as to anyone. He often takes a video in a new direction during shooting, telling the editors what effects to add as he goes. “On or off camera he is the exact same way,” says Shion. “He genuinely connects with his viewers.” Lest anyone think that’s pure parental boasting, Loann says Ryan’s 5-year-old twin sisters also love making videos, but “it’s not as natural to them.” (Yes, they already have their own line of toys.) The journey hasn’t always been a thrill ride. In 2003, Loann spent a month in jail for shoplifting, and after Ryan got famous, her arrest record became public knowledge. The family did exactly one in-person event with Ryan, in Bentonville, Ark. Thousands of families turned out, and the resulting melee shook them up. They reject the accusation that Ryan is their workhorse. Loann cites an incident on the set of Playdate when Ryan hurt his ankle. The production adjusted the scenes he’d shoot so he could sit and, after a break, kept filming. Loann agreed with the decision, but adds that “if that happens at home, we would not be filming for the next week or two.” The Kajis also say that while the family will go to L.A. for a spell to shoot his shows, Ryan’s YouTube videos take just a few hours a week. He belongs to local sports clubs and goes to school like other kids. Read More: ‘What Do People Want Me to Do? Wear Black Every Day?’: How Child Star JoJo Siwa Built Her Sparkly Empire What most worries Shion are families who try to emulate the Kajis’ success more recklessly. Ryan is the public face of kidfluencers, so any YouTube parent who is less than exemplary might reflect badly on him. Pocketwatch and YouTube issue manuals on how to be both parent and programmer, and Shion hints that he’s trying to start a working group of YouTube families to set industry standards. He won’t go into details, but says he would like more input from YouTube, especially on how families manage their finances, their kids’ time and fame. After all, the platform is taking a healthy cut of the money, and the minors who have made their name on it have few legal protections. The Kajis say a portion of the revenue from the family business goes into trust accounts they’ve established for their children, and they have put all of Ryan’s TV earnings into another trust. There are children on YouTube now with more subscribers than Ryan. His parents seem somewhat relieved. “I don’t want YouTube to be his future career,” says Loann. “We really want him to do something else. We’re continuing right now because he’s enjoying doing it.” The question remains: having found the perfect platform for their child, can they persuade him to leave it? —With reporting by Simmone Shah and Nik Popli.....»»

Category: topSource: timeNov 12th, 2021