Markets14:26 Текст источника в новой вкладке
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1. 10 things you need to know before the opening bell14:13[−]

mark zuckerberg

Here is what you need to know.

1. US senator asks Facebook CEO Mark Zuckerberg to sell Instagram and WhatsApp. Sen. Josh Hawley suggested the social-media giant could prove it's serious about protecting users' data by walling off the two sister platforms or selling them.

2. Ireland warns of 'civil unrest' on UK border as hopes of new Brexit deal fade. The country's deputy prime minister warned Brexit could lead to disruptions on the border with Northern Ireland, and downplayed the prospect of a deal between the UK and EU.

3. Photos show huge protests around the world, where hundreds of thousands are striking to demand action on climate change. Millions of people are expected to walk out of school and work on Friday, kicking off a week of protests calling for action to combat climate change.

4. The iPhone 11 officially goes on sale today and diehard Apple fans are lining up to get their hands on it. Photos from Apple Stores across Asia, Australia, and Europe show lines of people quickly building up outside.

5. Electronic Arts tweeted 'invest in Crypto' as a marketing stunt — and crypto whiz kid Justin Sun capitalized by promoting his Tron platform's games. The video-game giant was promoting a new character in Apex Legends, and Sun didn't miss the chance to grab some attention.

6. Google will invest $3.3 billion to expand its European data centers. The search and advertising giant's plan includes spending another 600 million euros ($663 million) on its Hamina data center in Finland.

7. Netflix's CEO says it will make a 'big increase' in buying UK content. The video-streaming platform will ramp up spending on British television production next year, Reed Hastings said.

8. World stocks climbed on Friday. Futures underlying the Dow Jones Industrial Average (+0.2%), S&P 500 (+0.2%), and Nasdaq (+0.3%) rose. In Europe, the DAX (+0.2%), FTSE 100 (+0.1%), and Euro Stoxx 50 (+0.6%) posted gains. Stocks rose in Asia with the Shanghai Composite (+0.2%) and Nikkei (+0.2%) closing higher.

9. Some interesting earnings reports are coming out. Smiths and Cracker Barrel are among those reporting.

10. There's some notable data on the docket. Two Fed speeches and an oil rig count are on the agenda.

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2. A rogue trader lost $320 million on wrong-way oil bets, prompting Mitsubishi to fire the person and alert police14:05[−]

Stock Trader sad

  • A rogue employee at a unit of Mitsubishi Corporation used unauthorized trades to bet on oil markets.
  • Petro-Diamond Singapore, a Mitsubishi Corporation unit, "expects to book a loss of approximately $320 million from its trade of crude oil derivatives."
  • The company discovered the trades in August and this week fired the employee and alerted police in a complaint.
  • Watch oil trade live.

A rogue employee at a unit of Mitsubishi Corporation used unauthorized trades to bet on oil markets, disguised them to look like "hedge transactions" with customers, then lost millions when the market went south.

The employee, at Petro-Diamond Singapore, a Mitsubishi Corporation unit, had been building the positions since January, Mitsubish said on Friday, confirming "that it expects to book a loss of approximately $320 million from its trade of crude oil derivatives."

The falling crude oil price since July translated into "large losses," it said. The company discovered the trades in August and fired the employee and filed a police complaint this week.

Read more: Oil spiked a record 20% on the sudden attack to Saudi oil supplies

Oil has been in the headlines lately — a shock record 20% surge in oil prices on Monday was triggered by supply fears after an attack on Saudi oil fields last weekend.

The sudden move in Brent crude caught traders by surprise. The price of Brent crude has settled since Saudi officials sought to ease supply concerns, and Brent is currently hovering at about 7% higher for the week.

brent crude

SEE ALSO: Hedge funds may be getting slammed (again) after oil's shock surge followed a record shift in equities

SEE ALSO: There's been an 'unheard of' stock market shift this week and it's crushing hedge funds. Here's everything you need to know.

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3. Electronic Arts tweeted 'invest in Crypto' as a marketing stunt — and crypto whiz kid Justin Sun capitalized by promoting his Tron platform's games12:11[−]

Justin Sun

  • Electronic Arts jokingly tweeted "invest in Crypto" to promote a new character in Apex Legends, and Justin Sun capitalized on the marketing stunt by touting his Tron platform's games.
  • "Check out games built on #TRON @WINkorg," the Tron and BitTorrent CEO replied to EA's tweet, tagging Wink, an online gaming platform on the Tron network.
  • Binance, Huobi Global, Bitcoin Magazine, and other members of the crypto community cheered EA's marketing stunt.
  • Sun made headlines this year after he paid $4.6 million to have lunch with Warren Buffett and invited Donald Trump to join them, only to postpone the meal at the last minute, sparking conspiracies he was in trouble with the Chinese government.
  • Here are 6 things to know about Justin Sun.
  • Here's a timeline of the Buffett lunch saga.
  • Here's everyone Sun has invited to the Buffett lunch.

Electronic Arts jokingly tweeted "invest in Crypto" to promote a new character in Apex Legends, and Justin Sun capitalized on the marketing stunt by touting the games available on his Tron blockchain platform.

"Check out games built on #TRON @WINkorg," the Tron and BitTorrent CEO replied to EA's tweet, tagging Wink, an online gaming platform on the Tron network.

SunEAtweet

EA made the comment after Apex Legends — its Fortnite-style shooterannounced it would release its third season on October 1 and introduced Crypto, a new Legend. The video game giant's tweet drew positive responses from several players in the crypto community including Binance, Huobi Global, and Bitcoin Magazine.

Tron — which operates the world's 13th largest cryptocurrency, according to CoinMarketCap — boasts games such as CropBytes and Magic Academy on its platform. Sun launched Tron Arcade last November and pledged to invest up to $100 million into the gaming fund over three years. "Let's build the next generation of games together!" he tweeted at the time.

Sun, a protégé of Alibaba founder Jack Ma, made headlines this year after he paid $4.6 million for a charity lunch with Warren Buffett and invited several crypto bosses as well as President Donald Trump to attend. However, he postponed at the last minute, sparking conspiracies he was in trouble with the Chinese government. The lunch is reportedly being rescheduled.

Read more: Crypto whiz kid Justin Sun is giving away $1.2 million to 100 people next year — and wants Andrew Yang to help him

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4. Data analytics company Datadog soared 39% on its first day of public trading. The CEO says its next big thing is hiring: 'I spend my days making sure we hire people well.' (DDOG)01:27[−]

Datadog IPO

  • Data analytics company Datadog went public on Thursday, and its stock rose 39% in the first day of trading.
  • DataDog was last valued privately at $7.83 billion, but should see a richer valuation than that when the markets open on Friday.
  • Datadog co-founder and CEO Olivier Pomel says that hiring is the company's top priority with the IPO out of the way.
  • He also said that DataDog's roadshow took an unusual turn: The company interviewed potential investors to make sure they understood what they were getting themselves into.
  • Pomel says that Datadog's focus on making its products accessible to as many customers as possible helps it take on competitors like IBM, HP, Broadcom, and Splunk.
  • Click here for more BI Prime stories.

The data analytics company Datadog soared 39% on its first day of trading on Thursday.

Last privately valued at $7.83 billion, Datadog had previously raised money from the likes of OpenView Venture Partners, RTP Ventures, and Index Ventures. Earlier this month, Bloomberg reported that Cisco was willing to acquire Datadog for a premium price, but Datadog passed.

Now, Datadog has gone public, and co-founder and CEO Olivier Pomel says he thinks Datadog can "grow a lot more as a company."

"We have some good proof points around the product and what we can do," Pomel told Business Insider. "The IPO is not an end in and of itself. We will go to business and really fully chase the opportunity of the massive transformation of companies moving from legacy IT to public and private cloud."

Pomel says Datadog plans to build more products, but his top priority is around hiring. He says everything, including building products, selling to customers, and operating the business flows from hiring, training, and retaining employees.

"Now, I don't spend my days doing any building myself," Pomel said. "I don't spend my days pitching my company to investors. I spend my days making sure we hire people well."

A 'mad dash'

As Datadog geared up for its IPO, Pomel says the last two weeks on the roadshow have been a "mad dash." As is usually the case with these roadshows, Datadog answered plenty of investor questions about the company and why Wall Street firms should invest.

But Pomel also says that Datadog did something just a little different on its roadshow: It interviewed investors to see how well they understand the company and its long term plans.

"There's a good amount of time that goes into how to present the business to the outside world so investors can understand what it's about and what matters and how to model the business," Pomel said. "One thing that's important about your IPO is it's the last time you get to pitch your investors. You try to set yourself for success by having your investors understand your business."

Now, Datadog joins a host of enterprise software companies that have gone public this year, including Zoom, PagerDuty, CrowdStrike, Slack, and Dynatrace. It'll also continue to compete with rivals like IBM, HP, Broadcom, and Splunk — many of whom are larger and better funded.

However, Pomel says that he's not especially worried: As the cloud computing market continues to grow, so too will demand for DataDog's services, he says — DataDog is especially well-suited to helping users track and improve the performance of software running in the cloud.

Read more: 11 enterprise rock stars that have quietly been responsible for some of the most successful cloud services in the world

"It's a very big market," Pomel said. "The world is transitioning from legacy IT to public and private cloud. It's going to grow and grow and grow for many years. It's not a winner take all market."

Pomel says that Datadog has a different approach to its competitors, as well. He says that its software is easy to use, such that any customer can pick it up and experiment with how best to use it.

A 'consistent' vision

Shardul Shah, partner at Index Ventures and a Datadog board member, says that although the company has grown, two big things have stayed the same.

"What stayed the same is, number one, the company has been relentlessly focused on customer value," Shah told Business Insider. "Second, they're addressing a ubiquitous need. Cloud migration and the requirement for collaboration is persistent across every industry. As a consequence, I'm looking forward to that combination as a persistent and deep need for driving business."

Shah says that one challenge companies face as they grow is "not sticking to their vision," but he's not worried about Datadog.

"What I have confidence in is Olivier's vision has always been consistent," Shah said. "I think these themes of businesses organizing teams to collaborate will be persistent. That Datadog has been able to go public shows how pervasive those things are and how important customer experience is."

Pomel adds that Datadog has come a long way since it first started in 2010. In 2012, it released its first cloud monitoring product. Since then, it has added app performance monitoring and log management products to its product lineup.

"We take it from the perspective of taking as much data as possible from different titles and making it accessible to as many people as possible," Pomel said. "Our focus is to get as broadly adopted as possible as opposed to being specialized on specific use cases that are then going to be used by tiny, tiny subsets for the workforce."

SEE ALSO: A quantum computing startup that spun out of a Harvard lab just came out of stealth mode with $2.7 million in seed funding from investors like Samsung

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5. Tesla's former VP of energy operations is headed to Beyond Meat — here are all the key names who have departed in the past year (TSLA)00:17[−]

elon musk

  • Tesla is known for its high rate of executive turnover, and recent years have been no different.
  • As the electric-car maker has faced production and delivery issues, investigations from the federal government, and questions about its ability to one day generate sustainable profits, departures from senior employees have added yet another challenge.
  • Former senior VP of energy operations Sanjay Shah is headed to Beyond Meat as the fake meat company's new COO, it said Thursday, September 19.
  • Visit Business Insider's homepage for more stories.

Tesla has seen a lot of senior employees leave in recent years.

As the automaker has faced production and delivery issues, investigations from the federal government, and questions about its ability to one day generate sustainable profits, departures from senior employees have added yet another challenge.

Sanjay Shah, senior vice president of energy operations since May 2018, departed the company to join Beyond Meat as head of operations in September, the plant-based protein startup said. In August, Bloomberg reported that Shah was " relinquishing some oversight."

His third-quarter departure follows that of chief technology officer JB Straubel, who stepped down in July.

Read more: Tesla needs to redesign the Model S sedan — here are 9 changes I'd like to see

These are the key names who have left Tesla or have announced their departure since the beginning of 2018, as well as when they left and where they went next (according to their LinkedIn profile or company announcements):

  • January 2018 - Jason Mendez, director of manufacturing engineering: LinkedIn profile does not list next position
  • January 2018 - Will McColl, manager of equipment engineering: founded WaveForm Design
  • February 2018 - Jon McNeill, president of global sales and services: became COO of Lyft
  • March 2018 - Eric Branderiz, chief accounting officer: became CFO of Enphase Energy
  • March 2018 - Susan Repo, corporate treasurer and vice president of finance: became CFO of Topia
  • April 2018 - Jim Keller, head of Autopilot hardware engineering: became head of silicon engineering at Intel
  • April 2018 - Georg Ell, director of Western Europe operations: became CEO of Smoothwall
  • May 2018 - Matthew Schwall, director of field performance engineering: became heady of field safety at Waymo
  • July 2018 - Ganesh Srivats, vice president overseeing retail, delivery, and marketing: became CEO of Moda Operandi
  • September 2018 - Sarah O'Brien, vice president of communications: became VP of executive communications at Facebook
  • September 2018 - Gabrielle Toledano, chief people officer: became executive in residence at Comcast Ventures
  • September 2018 - Dave Morton, chief accounting officer: became CFO of Anaplan
  • September 2018 - Liam O'Connor, vice president of global supply management: became chief procurement officer and head of bikes and scooters at Lyft
  • September 2018 - Antoin Abou-Haydar, senior director of production and quality: became vice president of global quality for Byton
  • October 2018 - Justin McAnear, vice president of worldwide finance and operations: became CFO of 10X Genomics
  • November 2018 - Phil Rothenberg, vice president in the legal department: became general counsel of Sonder
  • November 2018 - Jeff Jones, head of global security: LinkedIn profile does not list next position
  • November 2018 - Dan Kim, senior director of global sales, marketing, and delivery: became director of Airbnb Plus at Airbnb
  • December 2018 - Aaron Chew, director of investor relations: became vice president of investor relations at Proterra
  • January 2019 — Todd Maron, general counsel: LinkedIn profile does not list next position
  • January 2019 — Charles Mwangi , senior director of engineering: LinkedIn profile says he is working at an unnamed startup
  • February 2019 — Cindy Nicola, vice president of global recruiting: LinkedIn profile does not list next position
  • February 2019 — Dane Butswinkas, general counsel: returning to his trial practice at the firm Williams & Connolly
  • March 2019 — Deepak Ahuja, CFO: retired
  • March 2019 — Praveen Arichandran, director of growth: joining Citizen in April to lead growth.
  • April 2019 — Karl Wagner, senior director of global security: PTSD and suicide-prevention advocacy
  • June 2019 — Dave Arnold, senior director of global communications: LinkedIn profile does not list next position.
  • June 2019 — Felicia Mayo, vice president of human resources and head of diversity: LinkedIn profile does not list next position.
  • June 2019 — Peter Hochholdinger, vice president of production: vice president of manufacturing at Lucid Motors.
  • June 2019 — Steve MacManus, vice president of interior & exterior engineering: senior director at Apple
  • July 2019 — Jan Oehmicke, vice president of Tesla Europe: LinkedIn profile does not list next position.
  • July 2019 — JB Straubel, chief technology officer: did not announce his next position, but said he will continue to advise Tesla
  • August 2019 — Stuart Bowers, vice president of engineering: "Executive in residence" at the venture capital firm Greylock Partners
  • September 2019 — Sanjay Shah, senior vice president of energy operations: joining Beyond Meat as chief operations officer, the company said on September 2019.

Have you worked for Tesla? Got a news tip? Get in touch with these reporters at mmatousek@businessinsider.com or grapier@businessinsider.com. Secure contact methods are available here and here.

SEE ALSO: 'We cannot have technology and sales take over safety': Tesla is being sued again for a deadly Autopilot crash

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6. The top executives at Hollywood super-agency Endeavor could rake in a total of $1.5 billion from its upcoming IPO00:11[−]

Ari Emanuel, Patrick Whitesell

  • Endeavor Group, a Hollywood super-agency, filed for an initial public offering earlier this week aiming to raise as much as $619 million at a $7.6 billion valuation.
  • Ari Emanuel and Patrick Whitesell — the firm's top two executives — and a small group of other company insiders could take in close to $1.5 billion if the shares are listed at the middle of its estimated range, according to Bloomberg.
  • If Endeavor's listing is successful, it would be largest publicly-traded talent agency.
  • Visit the Markets Insider homepage for more stories.

Endeavor Group, one of the most dominant talent agencies in Hollywood, is getting ready to go public and a small group of company insider could take home more than a billion dollars if the listing is successful.

Endeavor top two executives, Ari Emanuel and Patrick Whitesell, and other senior management could rake in a combined $1.5 billion if the company's shares lists at the middle of its $30 to $32 target range, according to Bloomberg.

The company is looking to raise $619 million at a $7.6 billion valuation. If the IPO is successful, it would make Endeavor the largest publicly-traded talent agency.

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Emanuel and Whitesell, who built the agency and led it to secure deals to purchase the United Fighting Championship for $4 billion in 2016 and to merge with the William Morris Agency in 2009, are poised to receive millions in salary and bonuses for several years.

Emanuel, who serves as the chief executive officer of Endeavor, could earn as much as $28 million in additional stock if the company's valuation exceeds $7.53 billion. He's also eligible to earn equity payouts throughout the next decade worth up to $14 million each if the company's market value hits specific targets, according to Bloomberg.

Endeavor is expected to list on the New York Stock Exchange under the ticker "EDR."

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7. Stocks close mixed as the US and China resume deputy-level trade talks00:08[−]

us china trade lighthizer mnuchin liu he


Stocks finished mixed on Thursday as the US and China kicked-off deputy level trade negotiations for the first time in close to two months.

A Chinese delegation of about 30 officials met with members from the Office of the United States Trade Representative in Washington, D.C. on Thursday morning to establish the groundwork for high-level talks set to take place in October.

The reengagement also comes a few short weeks after both the US and China eased tensions by delaying and alleviating some tariffs.

Traders are keeping a close eye on the talks for any sign that the two countries could come closer to forging a resolution to the year-long trade war.

The Federal Reserve also moved to inject another $75 billion into capital markets to keep interest rates from moving higher. The instance marks the the third straight day the Fed completed an overnight repurchase agreement, or repo, to keep short-term rates within its target range.

The move also follows the Fed's decision from Wednesday to cut interest rates for the second time this year.

Here's a look at the major indexes as of the 4 p.m. close on Thursday:

Shares of US Steel plunged as much as 15% after the company reported a dismal profit forecast. The steel producer said it expects to lose $0.35 per share in the third quarter, compare to $0.06 loss expected by analysts. US Steelfollows domestic producers Nucor and Steel Dynamics in issuing profit outlooks below estimates this week.

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Microsoft climbed to a record intraday high after announcing a $40 billion share buyback program and boosting its dividend by 11% to $0.51 per share. As of June 30, the company still had $11.4 billion worth of shares to repurchase on another $40 billion buyback program from 2016, according to Securities and Exchange Commission filings.

Within the S&P 500, these were the largest gainers:

And the largest decliners:

Healthcare and utilities rose more 0.3%, while real estate climbed 0.3%. Those gains were offset by losses in industrials, energy, and financials.

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8. A majority of Americans think Trump’s trade war with China is bad for the economyЧт., 19 сент.[−]

tariffs


Americans are growing worried about the effects of a trade dispute between the US and China, putting a key reelection argument for President Donald Trump in jeopardy.

A New York Times survey out Thursday showed 63% of Americans said this month that the president's trade policies were bad for the economy in the short-term. Meanwhile, 58% of respondents said conflict between the US and China was bad for the country.

Hundreds of companies have testified over the past year that tariffs between the largest economies could disrupt supply chains through higher costs and uncertainty, while farmers have suffered from retaliatory actions. Congressional Republicans have issued similar warnings to the Trump administration, with some proposing legislation to curb presidential tariff powers.

But the Times poll was the latest sign of trade-dispute backlash among American consumers whose confidence and spending has fueled one of the brightest spots in the US economy.

Because Trump has generally polled better on the economy than on his general performance in office, that could pose real challenges for his reelection bid. A separate poll out this month showed a majority of households were worried that tariffs could raise prices and said they would at least partly blame Trump in the event of a recession.

The US and China have restarted talks but hopes for a deal have dimmed since May, when the two sides escalated tensions just as they were seen as on the brink of a deal. On Thursday, Commerce Secretary Wilbur Ross said it wasn't clear what China sought in negotiations and that its concessions on agriculture would not be enough for an agreement.

"What we need is to correct the big imbalances, not just the current trade deficit," he said in an interview with Fox Business Network. "It's more complicated than just buying a few more soybeans."

The White House did not respond to an email requesting comment, but Trump has repeatedly disputed the veracity of mainstream polls that he does not agree with. The Times survey of 2,740 adults was conducted from September 2 to September 8, with a modeled error estimate of plus or minus three percentage points.

Read more: The Fed cuts rates for 2nd time since financial crisis — but defies Trump's calls for 'big' stimulus

SEE ALSO: Global growth is set to hit a 10-year low as Trump's trade war drags down the economy

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9. Netflix tumbles after a Bernstein analyst says the stock could fall 21% before hitting a 'theoretical floor' (NFLX)Чт., 19 сент.[−]

Netflix gamescom dark crystal

  • Netflix shares fell as much as 2.8% on Thursday after a Bernstein analyst pegged the company's trading floor at $230 per share, which is roughly 20% lower than its current level.
  • The streaming company has fallen more than 21% over the last three months after announcing lower-than-expected earnings.
  • Netflix dropped again in early September after Apple announced its TV+ service will underbid cost $4.99 per month, lower than Netflix's entry-level plan.
  • Investors are mostly worried about Netflix's price, subscriber growth, and loss of content, analyst Todd Juenger said in the Thursday note.
  • However, pricing is "the only one that causes us any concern," he added.
  • Watch Netflix trade live here.

Netflix shares dropped as much as 2.8% Thursday after a Bernstein analyst said the streaming company could fall 21% before hitting a floor for its valuation.

The streaming company has fallen about 22% over the last three months after its latest earnings report missed analyst expectations and the company posted its first loss in US subscribers since 2011. Netflix shares fell again at the start of September after Apple announced its new TV+ streaming service will start at $4.99 per month. Netflix's most affordable plan costs $8.99 per month.

The second-quarter disappointment and looming introduction of new services into the streaming wars has several investors asking how low Netflix might fall, Bernstein analyst Todd Juenger said in client note. A 2017 valuation method found shares could fall as low as $230 from current prices before hitting a "theoretical 'floor,'" the analyst wrote.

Netflix closed at $286.60 per share on Thursday, and are up about 7% year-to-date.

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Despite implying a possible 20% downside if Netflix continued to fall, Juenger maintains his positive outlook for the streaming empire. Netflix stock maintains an "outperform" rating from Bernstein, with a 12-month target price of $450 per share.

The forecast implies a 54% potential upside in the long term, and Juenger noted shares could even return to nearly $400 before the end of 2019.

"In the nearer term, at a minimum, we would suggest a strong 2H Netflix business performance should at least return the stock back to where it traded before the Q2 miss," the analyst wrote.

The analyst noted pricing, subscriber growth, and the loss of content were the three biggest worries for investors eyeing Netflix. However, the media company's international growth, original programming, and loyalty among consumers should eliminate two of the three issues over time, Juenger said, with pricing serving as "the only one that causes us any concern."

Netflix has 31 "buy" ratings, nine "hold" ratings, and four "sell" ratings, with a consensus price target of $386.51 per share, according to Bloomberg data.

Now read more markets coverage from Markets Insider and Business Insider:

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NFLX

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10. Stripe just scored a $35 billion valuation, up $15 billion in just one year. But its president says it’s still a ‘toddler,’ so don’t call it a ‘late-stage startup’Чт., 19 сент.[−]

Stripe President John Collison

  • Stripe has raised another $250 million in a new round of funding that includes Silicon Valley heavy hitters like Andreessen Horowitz, General Catalyst, and Sequoia.
  • The round values Stripe at $35 billion — up from its $20 billion valuation about a year ago — making it more valuable on paper than companies like SpaceX or Airbnb.
  • All told, Stripe has now raised over $1 billion in venture capital funding, from investors that also include Visa, Kleiner Perkins, and CapitalG (formerly Google Capital).
  • Still, Stripe President John Collison tells Business Insider that he takes "deep umbrage" at the idea that it's a "late-stage startup" — he says that there's so much opportunity for Stripe, they'll still be building it up a decade from now.
  • He says that the lofty valuation is based on the strength of Stripe's business, which now processes "hundreds of billions of dollars" in payments each year. As long as they can keep executing on their mission of helping internet businesses and startups grow, he says, the sky's the limit.
  • However, Collison says not to expect an IPO any time soon.
  • Click here for more BI Prime stories.

Stripe, the San Francisco-based payments startup, has raised $250 million in a monster funding round that now values the company at $35 billion. That's up significantly from the $20 billion at which it was valuedwhen it raised funding late last year.

Founded and led by brothers and Irish immigrants Patrick and John Collison, Stripe has become one of Silicon Valley's highest-profile startups since it was founded in 2010. The new funding round includes venture capital heavy hitters like Andreessen Horowitz, General Catalyst, and Sequoia — all of whom had previously invested in the company.

This round brings Stripe's funding to date to over $1 billion, thanks in part to previous investors including Visa, Kleiner Perkins, and CapitalG (formerly Google Capital). The $35 billion valuation propels it ahead of contemporaries like SpaceX, valued at about $33 billion, and Airbnb, last valued at $31 billion.

Read more: The president of $20 billion Stripe explains the 3-pronged master plan as it opens a new service for small business loans

Despite all of this, John Collison, president of Stripe (his brother Patrick is CEO), says that the company is still "a toddler in our life cycle." He says that he and his brother take "deep umbrage" at any description of Stripe is a "late-stage startup." In their view, it's only getting started, and the Collisons expect to be at this for at least another decade, if not more.

He says that there's no trickery or "artificial" inflation to Stripe's rich new valuation: It's Stripe's view that it's an accurate reflection of the strength of the business and the opportunity in front of the company — and Collison says he wouldn't have it any other way.

"You want the valuation and the business to be in sync," Collison says. "Bad things can happen when you don't."

The funding itself will go towards continuing on with Stripe's existing master plan, says Collison. While Stripe is a "capital-efficient" business, he says, it's "useful" to raise outside capital to help it keep pace with its ambitions. That said, Collison says that the company has no immediate plans to go public.

A growing business

Stripe started as a simple way for developers to add the ability to take credit card payments into their apps, but has since expanded its vision into helping make it easier for entrepreneurs, all over the world, to run internet-based businesses. It counts Airbnb, Amazon, and Target as customers, and Collison says that Stripe now processes "hundreds of billions of dollars of transactions" per year.

In general, Collison says, there's still a lot for Stripe to do before it can consider its mission accomplished.

"Life is still more difficult for startups and internet businesses than it needs to be," says Collison.

Even as Stripe's core payments business continues to grow, the company has expanded into new product lines and markets, amid a larger international expansion.

Earlier this month, for example, the company introduced Stripe Capital, a new business unit to provide small business loans to internet companies. Not long after, it launched Stripe Corporate Card — which, as the name implies, provides its own twist on the company credit card.

The funding will also go towards generally reinforcing its infrastructure, as it brings new merchants and stores into its platform. Collison says that the Stripe payments API — the tool for connecting an app to Stripe's payments system — is used more than 250 million times per day, peaking at 13,000 times per second, and the company works hard to stay ahead of the curve.

If it can succeed on all these fronts, Collison says, it won't have any problems living up to the lofty expectations that come with a high valuation.

"Of course, that depends on our execution," says Collison — and that while today might involve a "brief moment of celebration," he says, "then it is back to work."

SEE ALSO: The founders of Lunchclub, a startup for making better professional connections, used this pitchdeck to raise $4 million in funding

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11. Deutsche Bank scoured 5 million pages of news and found that positive climate-change coverage helped stocks beat the market. Here's how that could shape the future.Чт., 19 сент.[−]

GettyImages/ NurPhoto / Contributor

  • Deutsche Bank research quantified the impact company's press and announcements around climate change had on share prices over time.
  • The firm found that companies that received positive coverage around climate change outperformed the MSCI World Index benchmark by 1.4 percentage points per year.
  • The team went on to project that assets under management for funds with an environmental, social, and governance mandate will hit 95% by 2030.
  • Click here for more BI Prime stories.

As climate change is thrust further into the mainstream discourse, the heat is being turned up on corporations that employ less-than-stellar environmental practices.

Consumers are increasingly pushing back on non-eco-friendly procedures, and their shifting attitudes are starting to impact the stock prices of companies that do prioritize the environment.

In order to quantify the impact this shift has had on stock performance, Deutsche Bank tapped into their artificial intelligence platform, α-DIG. The firm investigated more than 5 million pages of press incorporating over 1,600 MSCI World companies, spanning the last 2 decades.

Deutsche Bank ultimately arrived at a clear conclusion: caring about the environment is good for business.

"Companies that experienced positive press and announcements on climate change saw share price outperformance of 1.4 percentage points per year over the MSCI World Index — outperformance of 26%," the firm's research team said in a recent client note. "Conversely, bad press results in underperformance."

These findings are upheld and enhanced by the chart below, which splits Deutsche Bank's universe into two distinct subsets. The black line reflects the relative outperformance of the companies that relayed the most positive climate-change news versus the MSCI World Index. That translates into a compound annual growth rate of 6.4%, versus 5.6% for the index.

Meanwhile, the blue line shows the companies that have seen the largest improvements in the portion of positive climate-change news, regardless of how bad it was to start with. Their outperformance is even more pronounced: they've beaten the MSCI World gauge by 35%.

The takeaway here is that it's not too late for companies to start making strides as it pertains to ESG. And once they do, history suggests their share prices will benefit.

Deutsche Bank α-DIG

Further, Deutsche Bank has projected the amount of global capital falling under an environmental, social, and governance decree to grow to 95% of AUM by 2030. That means investors who ignore this trend will have to do so at their own peril.

"Given the increasing pool of investors who pick stocks based on a company's environmental, social, and governance traits, it seems certain that positive and negative share price effects seen in the last section will amplify themselves in the future," Deutsche Bank said.

Deutsche Bank, Global Sustainable Investment Alliance

The two charts deliver an unmistakable conclusion: the tide is shifting in favor of ESG-focused companies. And both companies and the investors who buy their stocks are being rewarded.

It's setting up a future where ESG adherence could make a crucial difference to a corporation's future, and also investor portfolios across the market.

"Once social movements hit a tipping point, they have proved very difficult to stop," Deutsche Bank concluded. "Customers have spoken, investors have spoken. Those companies that do not listen will certainly be left behind."

SEE ALSO: 'The early stages of a collapse': The stock market is undergoing a ruthless shift that reminds JPMorgan of a seemingly invincible trade that blew up in 2018

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12. China’s economy faces a 'triple threat' — and one economist says the trade war is only part of the storyЧт., 19 сент.[−]

China economy

  • China's preliminary third-quarter economic growth rate is the slowest ever forecast. And a "triple threat" of developmental factors could send the country into an even longer contraction, according to a Nomura economist.
  • The three primary threats are a projected decline in the nation's population starting in 2032, a middle-income trap, and the US-China trade war.
  • The factors could wipe out China's manufacturing advantage and send multinational corporations to other nations for cheap labor, Nomura's Richard Koo wrote.
  • Visit the Markets Insider homepage for more stories.

China's economy is grinding to its slowest levels of growth in decades.

The country's second-quarter growth of 6.2% was the slowest rate seen since it began reporting quarterly figures. The preliminary third-quarter estimate of 6% to 6.5% is the slowest ever forecast.

Though global stock markets have stabilized and trade talks with the US have resumed after a two-month hiatus, China's economy faces trouble from several different sectors, Nomura Research Institute chief economist Richard Koo wrote in a Wednesday report.

A large part of China's economic prowess comes from its ability to provide cheaper labor than other industrial nations at a massive scale. A "triple threat of growth-attenuating factors" could eliminate the country's manufacturing advantage and move critical foreign investment elsewhere, Koo wrote.

Here are the three main threats Koo detailed, and how they could cripple China's economy.

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The middle-income trap

As China's rapid development has raised the economic tide for its nearly 1.4 billion citizens, wages have risen in turn. This "middle-income trap" jeopardizes the country's low-cost labor market, as manufacturing interest leaves China for cheaper nations, Koo said.

At current wage levels, China's return on capital for manufacturers is nearing levels seen in emerging manufacuring nations like Vietnam and Bangladesh. The US-China trade war could exacerbate this migration and bring "huge negative implications for China."

"That, coupled with the hurdles faced by Chinese-made products in the US and other markets, suggests a meaningful decline in domestic investment is likely going forward," Koo wrote.



A soon-to-be-declining population

Demographic data showed China's working population shrinking at the start of the 2010s, and the trend projects a net decline in population starting as soon as 2032, Koo wrote.

The combination of a middle-income trap and a looming population decline is "extremely rare" for a country of China's economic strength, the economist wrote.

"These two factors alone would pose a difficult challenge for any nation, and now China must also deal with the trade war initiated by the US president."

With just 13 years before the projected pullback begins, the country should focus on developing its own intellectual property and pivot away from serving as "the world's factory, Koo added.



The trade war

The trade dispute between two of the world's economic superpowers is well into its second year, and apart from delayed tariffs and pledges to continue talks, not much progress toward a resolution has been made.

China may have been too quick to pivot from foreign investment to domestic innovation with its Made in China 2025 plan, Koo said, and the trade war could damage the manufacturing industries that drove the Chinese economy for so long.

"The Chinese economy remains heavily dependent on foreign businesses not only for manufacturing know-how but also for overseas marketing and sales," the economist wrote. "In view of that, the authorities should have treated foreign capital far better than they did."

If the country hopes to recover and keep its foreign investment intact, it should come to a trade agreement with President Trump before the 2020 US election, Koo said. If Trump loses, "it may well become impossible to separate geopolitics from trade issues."



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13. Global growth is set to hit a 10-year low as Trump's trade war drags down the economyЧт., 19 сент.[−]

Trump Xi

  • Global growth is expected to slow this year to a pace not seen since the financial crisis, the Organization for Economic Cooperation and Development said Thursday.
  • The US-China trade dispute has increasingly threatened the outlook in the largest economies and elsewhere.
  • "The uncertainty provoked by the continuing trade tensions has been long-lasting, reducing activity worldwide and jeopardising our economic future," said Laurence Boone, the chief economist at the OECD.
  • Visit the Markets Insider homepage for more stories.

Global growth is expected to slow this year to a pace not seen since the financial crisis, the Organization for Economic Cooperation and Development said Thursday. The new data comes as the US-China trade dispute increasingly threatens the outlook in the largest economies and elsewhere.

The OECD projected that the world economy would expand by 2.9% in 2019, the weakest annual growth rate in a decade. Output could remain low in 2020, at 3%, or fall further if the effects of tariffs worsen, the Paris-based organization said.

"The global economy is facing increasingly serious headwinds and slow growth is becoming worryingly entrenched," said Laurence Boone, the chief economist at the OECD. "The uncertainty provoked by the continuing trade tensions has been long-lasting, reducing activity worldwide and jeopardising our economic future."

The OECD also said that uncertainty surrounding Brexit had dimmed the outlook, warning that if the UK were to leave the European Union without a deal, it could significantly chip away at output.

The US and China have slapped tariffs on thousands of each other's products and vowed to expand those punitive measures in the coming months. The next scheduled rounds of escalations in October and December are expected to target far more consumer products than before, issuing a more direct blow to businesses and households.

"While solid consumer demand has supported service sector output to date, persistent weakness in manufacturing sectors and continuing trade tensions could weaken employment growth, household income and spending," the OECD report said.

The organization dimmed its outlook for US growth, predicting that it would slow to 2.4% this year and 2% in 2020.

The Federal Reserve similarly lowered its growth forecasts for the US this year on the back of trade tensions, which the Trump administration asserted was necessary to win fairer policies from China and others. The central bank lowered interest rates in July and September, its first attempt to aid the economy since the financial crisis.

"Trade policy tensions have waxed and waned, and elevated uncertainty is weighing on US investments and exports," Fed Chairman Jay Powell said Wednesday. "Our business contacts around the country have been telling us that uncertainty about trade policy has discouraged them from investing in their businesses."

Read more: The Fed cuts rates for 2nd time since financial crisis — but defies Trump's calls for 'big' stimulus

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14. Microsoft hits record high after announcing $40 billion stock-buyback plan, dividend boost (MSFT)Чт., 19 сент.[−]

satya nadella microsoft

  • Microsoft's stock price rose by 2.8% to an intraday record high on Thursday after the company announced an 11% increase to its dividend and a $40 billion share-buyback program.
  • This is the third time Microsoft has pursued a buyback plan worth $40 billion. The company did the same in 2013 and 2016.
  • Microsoft also said the share-repurchase plan has no expiration date and could be ended at any time.
  • Visit the Markets Insider homepage for more stories.

Shares of Microsoft climbed as much as 2.8% to an intraday record high on Thursday after the company rolled out a $40 billion share-repurchase program and raised its dividend by 11%.

It's the third share-repurchase plan of that size that the company has pursued in six years. The other two were in 2013 and 2016.

As of June 30, Microsoft still had $11.4 billion left on the share-repurchase program authorized in 2016, according to Securities and Exchange Commission filings. The company said the new one announced on Thursday has no expiration date and could be canceled at any time.

From 2017 to 2019, the company repurchased a total of 419 million shares worth about $35.7 billion, according to its most recent quarterly filing. Microsoft repurchased about $4.6 billion in stock during the second quarter of 2019.

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Share repurchases have slowed considerably in the second quarter. According to Bank of America Merrill Lynch, buybacks within the S&P 500 dropped by 14% from the same period last year. The firm also predicted that share repurchases could fall short of the $1 trillion forecast for the year.

Shares of Microsoft are up more than 39% year-to-date.

Microsoft stock

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15. Lyft's app just got a major safety upgrade for bike and scooter rentals (LYFT, UBER)Чт., 19 сент.[−]

Citi Bike New York

  • Lyft and its subsidiary bike rental apps will now show bike lanes on a map, the company announced Thursday.
  • It's a major safety upgrade for bikes and scooters as the ride-hailing company continues to invest in growing the service.
  • Still, both Uber and Lyft have faced unique problems in the still-nascent micromobility space.
  • Visit Business Insider's homepage for more stories.

If you've ever rented a bike or scooter on the Lyft app, you've probably encountered this conundrum: after unlocking the vehicle, it takes another app, like Google Maps, to then find an appropriate route.

No longer.

Lyft app bike lanesThe company announced Thursday that bike lanes would now be displayed inside its own app as well those of the 9 rental services it operates, like CitiBike, Capital Bikeshare, Divvy, and more.

It's only on iPhone for now, but Android is in the works, Lyft said. For now, the bike lanes will only show in places where bikes and scooters have been added to the core Lyft app, that's most everywhere except Boston and Portland.

Lyft hopes that by showing all transportation options, riders might opt for a green bike or scooter ride over a gas-powered car for their trip.

"We believe that providing clear information about bike lanes in our app will encourage more people to choose two-wheeled transportation for their trip," Caroline Samponaro, Lyft's head of bike and scooter policy, said in a press release. "Each ride on a bike or scooter represents a win for the environment, congestion, and a more livable city -- and that's what Lyft is all about."

Read more: Lyft's main taxi business is already profitable in some areas, but self-driving cars and bike-sharing are eating into that revenue

Earlier this year, Lyft launched a small pilot program on one San Francisco street that automatically directed drivers to safe pickup and dropoff spots that were out of the bike lane and didn't impede traffic. The company says news on the pilot's expansion is coming soon.

Bikes, meanwhile, continue to show massive growth for Lyft. The company declined to disclose any ridership numbers to investors in quarterly earnings reports, but said last week that CitiBike in New York set a daily record of 92,341 rides. That system, the largest in Lyft's fleet, is set to grow over the next two years through its third and final expansion phase.

But that growth hasn't been without struggles, as the entire industry is learning.

Lyft pulled its electric bikes from New York, Washington DC, and San Francisco earlier this year after a brake malfunction sent some riders over the handlebars. When a rebranded version of the pedal-assist bike relaunched in San Francisco, fires forced the bikes offline once again.

Uber, which was using the same bikes at the time, said it was able to fix the brake problem, and its bikes are still active in many markets. However, the company has recently raised prices in some locations and pulled the bikes from others, including San Diego, Atlanta, Dallas, San Antonio, Staten Island, and Providence. Scooters will remain in some markets, and the company hopes to have bikes on the roads again in Providence this fall, it said.

Lyft officials have declined to comment on its expansion plans for bikes and scooters, but told analysts in August that more investment was on the way.

"Collectively, we expect our bike and scooter investments to keep Lyft top of mind and increase both active riders and revenue per active rider," CEO Logan Green said on the conference call. "In the long term, we are confident bikes and scooters will contribute to our bottom line."

SEE ALSO: Lyft just got a step closer to bike-share domination. Here's why Uber and other competitors should be terrified.

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16. Overstock's ex-CEO loves crypto, calls Warren Buffett his 'rabbi,' clashed with Mark Cuban, and dated a Russian spy. Here are 5 wild facts about Patrick Byrne.Чт., 19 сент.[−]

Patrick Byrne, Overstock

  • Overstock.com founder and boss Patrick Byrne resigned from the online retailer this month, stating he was "already too controversial to serve as CEO."
  • Byrne's colorful past includes seeking advice from his "Omaha rabbi" Warren Buffett, clashing with Mark Cuban, and describing Steve Cohen and Michael Milken as "Sith Lords" and "Al Qaeda."
  • He has sold about $120 million worth of Overstock shares to finance gold, silver, and cryptocurrency investments, and dated Russian spy Maria Butina.
  • Watch Overstock trade live.

Overstock.com founder and boss Patrick Byrne resigned from the online retailer last week, stating he was "already too controversial to serve as CEO."

Byrne's colorful past includes learning from his "Omaha rabbi" Warren Buffett, clashing with billionaire Mark Cuban, describing financiers Steve Cohen and Michael Milken as "Sith Lords" and "Al Qaeda."

He sold about $120 million worth of Overstock shares to finance gold, silver, and cryptocurrency investments. He also dated Russian spy Maria Butina.

More details about Byrne's wild life are outlined below.

SEE ALSO: Overstock founder Patrick Byrne was seemingly involved in a web of intrigue that involved a Russian spy and the FBI

Patrick Byrne's "rabbi on life" is Warren Buffett.

"I've been lucky to have this great rabbi on life out in Omaha, this guy Buffett who I met when I was a kid," Patrick Byrne said during a discussion of Overstock's crypto ventures in August 2015.

Byrne met Warren Buffett, the so-called Oracle of Omaha, through his father. John "Jack" Byrne served as the chairman and chief executive of Geico from 1976 to 1985.

The elder Byrne saved the insurance giant — one of Buffett's oldest investments — from going bankrupt, Buffett wrote in his 1980 letter to shareholders. "'Let Jack Do It" works fine as a corporate creed for us," the investing guru wrote in his 1982 letter.

Patrick Byrne followed his father's example. He ran Fechheimer Brothers, a uniform manufacturer owned by Buffett's Berkshire Hathaway conglomerate, for two years between 1997 and 1999.

Byrne has quoted Buffett several times on calls with analysts. Moreover, he credited Buffett with persuading him to alert reporters of his involvement in "political espionage" for the US government in the run up to the US presidential election in 2016.

He came forward "upon my Omaha rabbi reminding me of my duty as a citizen," Byrne said in a statement.



Byrne has squabbled with Mark Cuban.

Byrne has squabbled with Mark Cuban, the "Shark Tank" star and owner of the Dallas Mavericks.

Byrne told a Bloomberg TV host in 2015 that the billionaire's friends were trying to get federal authorities to investigate him.

"Some of the officials are monsters," he said. "You'll probably read a headline that I was stopped with drugs or a dead body."

"Patrick Byrne is a paranoid fool," Cuban responded on his blog. He added that he had shorted 20,000 Overstock shares and "would love to short many, many more shares" because "companies run by people I feel are paranoid fools, tend to go out of business."

If he wanted to sink a company,Cuban said, he wouldn't go to the authorities. "I would just try to get them to hire Patrick Byrne."

Byrne fired back in an interview with a Business Week reporter in early 2006.

"Mark Cuban is living proof that even the billionaires club has a bell curve: Mark holds one end of it, and Bill Gates has the other," he said. "You guess which is which."



Byrne slammed Steve Cohen and Michael Milken as "Sith Lords" and "Al Qaeda."

Byrne accused a "master criminal from the 1980s" of coordinating an attack on Overstock in 2005. He labeled the individual a "Sith Lord," the title given to Darth Vader and other villains in the Star Wars franchise.

Byrne doubled down in 2006, suggesting "Al Qaeda" was a more accurate description for the people he claimed were conspiring with the US government and the media to damage his business.

In an interview with the New York Observer in 2010, Byrne revealed the targets of his insults were two well-known financiers. "It's Steven Cohen and Mike Milken."

Cohen is the billionaire founder of SAC Capital, who now runs Point72, another hedge fund. SAC pleaded guilty to insider trading charges in 2013.

Milken helped to develop the market for high-yield or "junk" bonds. He pleaded guilty to securities and reporting violations in 1990, and spent two years in prison.



Byrne has dumped about $120 million worth of Overstock shares to finance gold, silver, and crypto investments.

Byrne recently dumped about 5 million Overstock shares for around $90 million. He also sold at least 1.7 million shares in Overstock for more than $30 million between September 2018 and May 2019.

He has earmarked the cash from the latest sale for gold, silver, and crypto investments. He planned to use the proceeds from the earlier sale to add to the $12.5 million he's already invested in blockchain projects, and finance the roughly $50 million he's pledged or already given to charity, Byrne said in an open letter in May.

"I simply had to supplement my nominal salary with stock sales in order to fulfill personal commitments to invest personally in blockchain projects" and meet charitable pledges, he said.

Byrne was bemused by the backlash from investors to his stock sale.

"Frankly, I had no idea that shareholders would demand explanations of why and how I might want to use my cash derived from my labor and my property to pursue my ends in life," he said.



Byrne dated Maria Butina, a Russian spy.

Byrne was romantically involved with Russian spy Maria Butina, her attorney confirmed earlier this month.

The Overstock boss claimed in multiple TV appearances that he served as a FBI operative in the run up to the US presidential election in 2016. The agency ordered him to maintain his relationship with Butina, who he met at a conference in 2015, he said.

Byrne claimed in a statement that he helped the "Deep State" and the "Men in Black" — the FBI — to conduct "political espionage" against Hillary Clinton, Donald Trump, and other presidential candidates.

"I now plan on leaving things to the esteemed Department of Justice (which I have doubtless already angered enough by going public) and disappearing for some time," he added.



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17. US Steel, formerly a darling of Trump's trade war, plunges 15% after issuing dismal profit forecast (X)Чт., 19 сент.[−]

trump granite city us steel

  • Shares of US Steel tumbled as much as 15% on Thursday after the producer said it expects to post a larger loss than analysts expected for the third quarter.
  • The company said it expects a loss of $0.35 per share for the period, compared to the $0.06 loss estimated by Wall Street analysts.
  • The firm cited falling demand for flat-rolled steel and a bleak outlook for the European market as the reason for the forecast.
  • The weak guidance come as the steel industry is continuing to grapple with dwindling demand and the fallout of the US-China trade conflict.
  • The Trump administration levied steep tariffs on steel in early 2018, a move meant to level the playing field for American companies through restrictions on foreign access to the market.
  • Visit the Markets Insider homepage for more stories.

Shares of US Steel plunged as much as 15% on Thursday after the company gave a bleak profit forecast amid diminishing demand for flat-rolled steel and deteriorating market conditions in Europe.

The steel producer said it expects to see a loss of $0.35 in the third quarter, compared to the $0.06 loss forecasted by Wall Street analysts.

"Based on the current market conditions and the continued high level of steel imports into Europe, we do not expect to restart the currently idled blast furnace this year," the firm said in an SEC filing on Thursday.

The firm also said it plans to continuing slashing up to 2,500 jobs in its European segment by the end of 2021. So far, the company has reduced headcount by about 1,800. US Steel also laid off dozens of workers at a plant in Michigan in late August.

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US Steel is the third manufacturer to report guidance below expectations this week. Nucor and Steel Dynamics said they expect profits come up short of analysts estimates amid lower prices and softening demand.

The Trump administration levied steep tariffs on steel in early 2018, a move meant to level the playing field for American companies through restrictions on foreign access to the market. But the industry has struggled over the last year.

Shares of US Steel are down more 40% year-to-date.

US Steel stock

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18. Mattel snagged the rights to Hello Kitty by flying a team to Tokyo and pitching the brand's 91-year-old 'patriarch'Чт., 19 сент.[−]

hello kitty

  • Toy titan Mattel snagged the license to make Hello Kitty products by flying a team to Tokyo and pitching the 91-year-old boss of Sanrio, the brand's parent company.
  • "Hello Kitty was not available, it was not being pitched or presented for people to bid on," Mattel CEO Ynon Kreiz said at a conference this week. "We went to Tokyo, multiple meetings with the patriarch owner of Sanrio," he added, "pitched and won those rights."
  • Mattel's proactive approach also helped it win the rights to BTS, a South Korean boy band. "It's not meant to be a toy, but we turned it into a toy line through creativity and innovation and going after it and winning it aggressively," Kreiz said.
  • Watch Mattel and Sanrio trade live.

Toy titan Mattel snagged the license to make Hello Kitty products by flying a team to Tokyo and pitching Shintaro Tsuji, the 91-year-old founder and CEO of the brand's parent company, Sanrio.

"Hello Kitty was not available, it was not being pitched or presented for people to bid on," Mattel CEO Ynon Kreiz said at a conference this week. "We went to Tokyo, multiple meetings with the patriarch owner of Sanrio," he added, "pitched and won those rights."

The maker of Barbie, Hot Wheels, and Fisher-Price struck a deal with Sanrio in June to develop toys, dolls, games, baby gear, and other products based on Hello Kitty and other cute characters such as Chococat and Tuxedosam. Tsuji founded Sanrio 60 years ago and debuted Hello Kitty — a white Japanese Bobtail wearing a big, red bow — 45 years ago.

Mattel has landed licenses for Minions, Toy Story 4, and other high-profile franchises in recent months. Securing the Hello Kitty license shows Mattel is "not necessarily following the beaten path of getting into a bidding cycle on known properties that come to the market, but rather innovating and going out and creating a new line out of something that was not necessarily available," Kreiz said.

The group's proactive approach helped it win the rights to BTS, the South Korean boy band that presented the 2019 Grammys, Kreiz said. "It's not meant to be a toy, but we turned it into a toy line through creativity and innovation and going after it and winning it aggressively."

Shares in Mattel surged about 12% on June 4, the day it announced the Hello Kitty deal. However, they plunged more than 10% on August 9 after the company received an "anonymous whistleblower letter" and scrapped a planned debt offering in order to investigate its claims. It hasn't disclosed any further information about the letter.

Read more: Mattel rejected a merger with MGA Entertainment. Here's why the toy giant is likely being trolled.

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19. Overstock's controversial former CEO sold his entire $90 million stake to pile into gold and crypto investments (OSTK)Чт., 19 сент.[−]

Patrick Byrne, Overstock

  • Overstock founder and former CEO Patrick Byrne sold nearly 5 million shares totaling roughly $90 million in order to invest in gold and cryptocurrencies, according to regulatory filings and a Wednesday blog post.
  • The former executive said his sale was to separate the company from his own controversial statements, and that regulatory agencies would "try to break Overstock as a way of crippling me."
  • Byrne resigned from the position August 22 after an unusual statement addressing the "Deep State" tanked the company's stock.
  • The press release also drew attention to his three-year relationship with Russian spy Maria Butina, although it wasn't specifically mentioned.
  • Watch Overstock trade live here.

Overstock founder and former CEO Patrick Byrne sold nearly 5 million shares totaling roughly $90 million in order to invest in "counter-cyclical" assets like gold and cryptocurrencies.

Byrne plans to make his new investments by Friday. He can also provide "a capital injection if needed by buying back into Overstock" as soon as March 17, 2020, a Wednesday blog post highlighted.

The former executive added that his move into crypto and precious metals allows him to move his capital "outside acts of retaliation from the Deep State."

"That is important because, in fact, I am now going to shellac them," he wrote. "Actually, 'shellac' is too weak a word for what I intend to do to the Deep State. Sit back and enjoy the show."

The company's founder cited insurance, controversy, and hedging for the reasons behind his sale, and that it wasn't due to a "lack of confidence" in the e-commerce business. Finding corporate insurance while leading Overstock was "impossible," the former CEO said, and the company's success in 2019 made for a good time to sell.

Read more: Bears beware: A Wall Street strategist explains why the S&P 500 could spike 160% over the next 10 years

Byrne added that his controversial statements would negatively affect the company, as he expects regulatory bodies to "try to break Overstock as a way of crippling me." The firm can avoid any Byrne-related hot water now that his stake is eliminated, he said.

"You think me controversial now, but you ain't seen nothing yet. I know enough to fry the Deep State to ashes," Byrne wrote.

The company's stock fell as much as 8.9% early Thursday before paring some losses. Overstock traded at $15.56 per share as of 11:21 a.m. ET, and is up about 9% year-to-date.

Byrne exited the company August 22, calling himself "already too controversial to serve as CEO." The former executive issued a press release August 12 saying he assisted in federal elections into the 2016 US presidential election.

He regarded the statement as "comments on the Deep State," referred to law-enforcement officials as "the Men in Black," and said his decision to issue the release was encouraged by his "Omaha Rabbi."

The August 12 press release also drew attention to his three-year relationship with Russian spy Maria Butina, though it wasn't specifically mentioned. Byrne's statement was made to publicize his issues with how the federal government handled its case against Butina, the New York Times reported.

Byrne's resignation saw shares trade up to 17% higher August 22.

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OSTK

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20. Beyond Meat gets rare "buy" rating from analyst despite 500% post-IPO rally (BYND)Чт., 19 сент.[−]

ethan brown beyond meat ceo

  • Beyond Meat was issued a "buy" rating from an analyst at Barclays, who initiated coverage Thursday.
  • It marks the second bullish rating for Beyond Meat, along with JPMorgan. A total of 11 firms cover the stock.
  • Shares rose as much as 2% on the news. The company's stock has surged more than 500% since going public in May.
  • Barclays said Beyond Meat could gain a considerable part of the global meat industry in a decade, and that the sky is the limit for the company.
  • Watch Beyond Meat trade live on Markets Insider.

Beyond Meat has gained another "buy" rating from a Wall Street analyst.

Shares of the plant-based meat company rose as much as 2% on Thursday after Barclays analyst Benjamin Theurer initiated coverage on the company with an "overweight" rating and a price target of $185.

It marks just the second bullish rating for Beyond Meat after its May IPO. The only other analyst that has an overweight recommendation on the stock is Ken Goldman of JPMorgan, who has a price target of $189. A total of 11 firms cover the stock.

Here are Theurer's main reasons for his overweight rating on shares of Beyond Meat:

Big potential

Barclays estimates that Beyond Meat could reach 4.5% market share of the global alternative meat industry, which in turn could capture 10% of the global meat industry in a decade. That's nothing to shrug at. Plant-based meat is currently a $14 billion market in the US, and Barclays estimates that it could balloon to $140 billion in the next decade.

"There's a big potential, both at the top and the bottom," Theurer said. "We expect growth to continue at high levels for upcoming years, and expect the company to achieve a 15% EBITDA margin by 2029, in line with its long-term guidance."

A strong pipeline of products

The company acknowledges that alt-meat is still a work in progress and is addressing main driving factors in the space — taste, and price. The company has a pipeline of continuous innovation that both improves existing products and expands its portfolio across different proteins, Theurer wrote.

Read more: Bears beware: A Wall Street strategist explains why the S&P 500 could spike 160% over the next 10 years

"The company is aware there is still work to do in terms of providing a solution that not only addresses animal welfare and environmental concerns," Theurer wrote. But, it "also provides a healthier alternative to eating animal protein," he said.

Not like other meat companies

Beyond Meat is "not your typical meat company," Theurer wrote. Unlike other "publicly traded protein players that are entering the alternative space less aggressively," Beyond Meat's entire value proposition is based on plant-based products, he said.

And, because most of its alt-meat peers are private, "BYND provides growth and earnings acceleration unparalleled in the space."

Major risks include competition from both alt-meat peers and traditional companies, Theurer said. Beyond Meat could also face adverse regulation, supply chain disruptions, raw material shortages, and capacity constraints.

Wall Street is still largely neutral on the stock. Of the analysts that have initiated coverage, five have neutral ratings, two recommend investors sell, and two have buy ratings, according to Bloomberg data.

The rating comes a day after shares of the company slid more than 7% when Tim Hortons announced that it would stop offering Beyond breakfast sandwiches and Beyond Burgers at all Canadian locations outside of British Columbia and Ontario.

Shares of Beyond Meat are up more than 500% since the company's IPO.

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