Business

Does the Fed Care about the Rest-of-the-World?

That’s a title I borrowed from a paper by Barry Eichengreen; the actual title is “International environment and US monetary policy: a textual analysis” written by Laurent Ferrara and Charles-Emmanuel Teuf: What role does the international environment play in shaping US monetary policy decisions? To measure its influence, we construct an international indicator extracted from minutes of Fed monetary policy committee meetings. In a Taylor rule model, we show that the indicator has a significant and negative impact on the fed funds rate. Discussions centred more on the international environment may thus be associated with greater monetary policy easing. Chart: International environment indicator and major events affecting the global economy Note: The grey areas correspond to major internation...

Steve Cohen Not Crypto Enough For Local Luddite

By AntanaCoins (Own work) [CC BY-SA 3.0], via Wikimedia Commons Steve Cohen is trying, you guys. Trying to figure out these cryptocurrencies that were all the rage nine months ago. Trying to glean how to make money on them. Even trying to give other people a shot thereat. But the Big Guy is old school and it works for him. That means anyone who wants to join the revolution, or at least make (or lose!) a ton of money on it, is going to have to do so somewhere other than 72 Cummings Point Road. And that place is where dreamers and charlatans have flocked for a hundred years: Lipstick City, baby! That’s where ex-Point72er Travis Kling is heading to make his bitcoin billions. And his timing couldn’t be better, having quit at the top of the market back in December and planning to launch his Iki...

Google ends cryptocurrency ad ban

Google is ending its sweeping ban on cryptocurrency-related advertising and plans to allow regulated crypto exchanges to buy ads in the United States and Japan. The new policy starts in October. Google’s original restrictions, which it announced in March and rolled out in June, were intended to protect consumers and included initial coin offerings (ICOs), wallets, and trading advice, which are still not allowed. While the crypto-currency boom has produced both excitement and wealth, it has also spawned fraud and high-profile scams, as regulation struggles to catch up with a fast-moving space. At various points earlier this year, Google, Facebook, Twitter, and Snapchat all cracked down on crypto-related advertising to stop bad actors, though their initial hard-line approaches prevente...

Southwest Airlines adds free in-flight messaging

Can’t stand being out of touch at 35,000 feet but don’t want to pay for pricey in-flight Wi-Fi? Try instant messaging. Southwest Airlines is the latest carrier to offer free in-flight messaging. The airline had been charging $2 per flight for the service since 2013, a price that is still listed on the airline’s website. More from USA Today: Southwest Airlines User’s Guide Southwest seat saving drives some passengers crazy Southwest Airlines increases early bird boarding fee The carrier, the USA’s top carrier of domestic passengers, began rolling out complimentary messaging on select aircraft with Wi-Fi earlier this month, spokeswoman Michelle Agnew said. Passengers can send instant messages via iMessage and WhatsApp as long as they download the apps before the...

Eddie Lampert Has Some New Ideas To Prolong Sears’ Suffering

By Jonrev at English Wikipedia [Public domain], via Wikimedia Commons Sears has taken yet another turn for the worse, you guys. Its vitals are plummeting. Even the course of treatment recommended last month won’t do the trick, seeing as how it would raise only $480 million of the $1.1 billion Sears needs to survive its debt payments over the next couple of years. Simply put, it “now faces significant near-term liquidity constraints” in addition to all of the other things that ail it. The man in charge of Sears’ medical care (who may also be the man in charge of putting it into intensive care in the first place), Dr. Eddie Lampert, has taken some pretty drastic steps in his decade-plus overseeing the apparently terminal retailer, specifically a whole series of amputations that have left Sea...

BMW warns of lower profits on new emissions rules and escalating trade war ‘distorting demand’

BMW said Tuesday its 2018 profits are likely to fall due to the costs of implementing new emissions standards in Europe and rising uncertainty stemming from the escalating global trade war. Automotive revenues are now expected to fall slightly from the €88.6 billion it generated last year, and a reverse from from a previously expected year-over-year increase. BMW had previously forecast profits to be on par with last year, but now expects a “moderate decrease,” the company said in a release. The company earned €10.7 billion. “The continuing international trade conflicts are aggravating the market situation and feeding uncertainty,” BMW said in the release. “These circumstances are distorting demand more than anticipated and leading to pricing pressure in sever...

Instagram founders resign to ‘explore our curiosity and creativity again’

Instagram co-founders Kevin Systrom and Mike Krieger have resigned from Facebook to “explore our curiosity and creativity again.” It’s a major blow to Facebook, which owns Instagram, as the company continues to lose top executives during a year of scandal and dwindling community support. Instagram had become something of Facebook’s shining star — avoiding the privacy concerns that have plagued the core platform and claiming the youngest users who are increasingly leaving Facebook. “We’re planning on taking some time off to explore our curiosity and creativity again. Building new things requires that we step back, understand what inspires us and match that with what the world needs; that’s what we plan to do,” CEO Systrom said in a statement. ...

Opening Bell: 9.25.18

Instagram Founders Depart Facebook After Clashes With Zuckerberg [Bloomberg]Kevin Systrom and Mike Krieger, who have been at the company since Instagram’s acquisition by Facebook in 2012, had been able to keep the brand and product independent while relying on Facebook’s infrastructure and resources to grow. Lately, they were frustrated with an uptick in day-to-day involvement by Zuckerberg, who has become more reliant on Instagram in planning for Facebook’s future, said the people, who asked not to be identified sharing internal details.Without the founders around, Instagram is likely to become more tightly integrated with Facebook, making it more of a product division within the larger company than an independent operation, the people said. Republicans Rally Around Kavanaugh Nomination [...

Comcast buys 29 percent of Sky shares, seeks to make further purchases

Comcast has acquired 29.1 percent of Sky shares, according to an official statement from the London Stock Exchange published Tuesday. “As a result of its purchases, Comcast Bidco owns a total of 499,571,959 Sky Shares, representing approximately 29.1 per cent. of the ordinary share capital of Sky,” the statement said. Comcast Bidco is an indirect, wholly-owned subsidiary of Comcast Corp. Comcast is now looking to make further purchases of Sky shares at a price of £17.28 ($22.60) per share. According to the statement, Comcast Bidco is unable to purchase Sky shares from shareholders “incorporated or located in the United States, or where the Sky Shares would be sold from the United States.” The U.S. cable giant outbid rival Twenty-First Century Fox over the weekend, m...

Instagram’s co-founders to step down from company

Kevin Systrom and Mike Krieger, the co-founders of the photo-sharing app Instagram, have resigned and plan to leave the company in the coming weeks, adding to the challenges facing Instagram’s parent company, Facebook. Mr. Systrom, Instagram’s chief executive, and Mr. Krieger, the chief technical officer, notified Instagram’s leadership team and Facebook on Monday of their decision to leave, said people with direct knowledge of the matter, who spoke on condition of anonymity because they were not authorized to discuss the matter publicly. Mr. Systrom and Mr. Krieger did not give a reason for stepping down, according to the people, but said they planned to take time off after leaving Instagram. Mr. Systrom, 34, and Mr. Krieger, 32, have known each other since 2010, when th...

Cramer advises staying away from animal health play Elanco at these levels

CNBC’s Jim Cramer has long backed the “humanization of pets” theory — the notion that how much people spend on their pets is continually rising — but the latest animal-focused entrant to the public market did not fit Cramer’s bill. Last week, pharmaceutical giant Eli Lilly spun off Elanco Animal Health via an initial public offering. A drug and vaccine developer, Elanco is a leader in medicinal feed additives, with 63 percent of its sales coming from food animals like chicken. And while investors sent shares of Elanco up 50 percent in their first trading day, the “Mad Money” host wasn’t as thrilled about the company’s prospects. “As much as I like corporate breakups and the humanization of pets and the rising popularity of chicken and o...

Jamie Dimon on 2020 rumors: ‘I don’t think I would be good at’ being president

In a time when CEOs and non-political figures seem to be exploring presidential bids, J.P. Morgan Chase & Co. Chairman and CEO Jamie Dimon told CNBC that he’s content with staying on the sidelines. Referencing his earlier statement that he could beat President Donald Trump in an election, Dimon once again walked back the comment in a Monday interview with CNBC’s Jim Cramer. “It was on my mind because people mentioned it, but it’s not what I want to do,” he said in a “Mad Money” interview. “I don’t think I would be good at it. I’m not a political person, per se.” And besides, “I think it’s probably too soon for a banker” to run for president, the CEO said. Instead, Dimon, who has run J.P. Morgan for over...