Business

Jay-Z and Saudi royalty backed this 29-year-old to build a billion-dollar private jet app

When a 21-year-old Sergey Petrossov found himself on a private jet for the first time, he didn’t anticipate he’d one day make it a regular occurrence — not only for himself, but for thousands of others. Eight years on, however, he sits at the helm of JetSmarter, the billion-dollar, celebrity-backed private jet booking app commonly dubbed the Uber of the skies. “At the time, I didn’t know it was going to be a business,” Petrossov told CNBC Make It, recalling his first trip in 2009. It wasn’t an obvious journey for Petrossov, after all. Back then, he was newly graduated from the University of Florida and cutting his entrepreneurial teeth on a start-up for schools in his native Russia. A chance encounter with the owner a private jet company saw him offered ...

Net vs. Gross Investment

Deregulatory moves, both actual and anticipated, have been hailed as spurring business fixed investment [1] Is there content to this assertion? A glance at nonresidential fixed investment seems to be supportive. Figure 1: Private nonresidential fixed investment, in billions of Ch.2009$, SAAR (blue). NBER defined recession dates shaded gray. Source: BEA, 2017Q4 3rd release. However, the standard investment series reported in the NIPA tables pertain to gross investment spending, i.e., not taking into account depreciation. As capital expenditures have skewed more toward information and communication technology (ICT) equipment and software, the pace of capital depreciation has accelerated. As a consequence, the net and gross series have deviated more profoundly over time. Plotting net investme...

Zuckerberg should look to Starbucks CEO Kevin Johnson on how to handle a crisis: Management guru

Facebook executives should look to Starbucks leadership on how to handle a company crisis, Yale management guru Jeffrey Sonnenfeld told CNBC on Wednesday. Starbucks is making quick and clear changes following outrage over the arrests of two black men at one of its cafes in Philadelphia last week. Meanwhile, Facebook took days to deal with the fallout of revelations that a political research firm, Cambridge Analytica, was able to access the personal data of millions of Facebook users for political marketing. “What Howard Schultz, but especially what CEO Kevin Johnson [have] done here has been remarkable. It is the anti-Mark Zuckerberg, the anti-Sheryl Sandberg,” the Yale senior associate dean told CNBC’s “Squawk on the Street.” “They truly did lean in. In...

Watch SpaceX launch NASA’s planet hunting satellite on a Falcon 9 rocket

[The stream is slated to start at 6:30 p.m. ET. Please refresh the page if you do not see a player above at that time.] SpaceX is set to launch Wednesday evening from Florida in its latest mission for NASA, launching a new planet-hunting satellite into orbit around the Earth. Elon Musk’s rocket company will livestream the 6:51 p.m. ET launch from Cape Canaveral Air Force Station. Delayed multiple times from March, the company’s mission to launch the Transiting Exoplanet Survey Satellite (or TESS) for NASA is now ready. The mission will launch using a Falcon 9 rocket, which will return to land on the SpaceX autonomous ship in the Atlantic Ocean about 8 minutes after liftoff. @SpaceX: All systems and weather are go for Falcon 9’s launch of @NASA_TESS today at 6:51 p.m. EDT,...

Bump stock maker Slide Fire to stop taking orders

Slide Fire Solutions said on Tuesday it would shut down its website and stop taking orders from next month for bump stocks, devices that allow semi-automatic weapons to fire like a machine gun. The move comes after the Justice Department proposed rule changes last month that will effectively ban bump stocks. Moran, Texas-based Slide Fire will execute all orders given prior to May 20, it said in a statement on its website. Slide Fire, which made the bump stock devices that were used by the gunman in the mass shooting at a Las Vegas music festival in October, was accused of negligence as well as design and manufacturing defects. “Bump stocks should not be available for sale to the general public, and they should never have been allowed to be sold. Bump stocks serve no purpose other tha...

Engine that malfunctioned on Southwest flight is ‘most reliable in the world’: Former airline CEO

Former Continental Airlines CEO Gordon Bethune said the type of engine on the Southwest Airlines plane that malfunctioned on Tuesday, killing a passenger, is “the most reliable in the world.” “I can’t think of a better one,” Bethune said Wednesday on CNBC’s “Closing Bell.” On Tuesday, a fan blade came off the CFM56-7B engine on Southwest Airlines Flight 1380, which was traveling from New York to Dallas, shattering a window. The aircraft made an emergency landing in Philadelphia, where a passenger died — the first fatality from a U.S. commercial airline accident in almost a decade. “This never happens,” said Bethune, who served as chairman and CEO of Continental from 1994 to 2004. “And the likelihood of it happening again in ...

Former Morgan Stanley Trader (Not) Looking To Make A Quick Million On Business Cards That Led To Most Annoying Moments Of His Life

Remember our pal, former Morgan Stanley fixed-income trader Morgan Stanley? Well, someone is on Craigslist looking to make $1 million on three of his former business cards. Take a look at the beauty of this meta trolling: Now we’re not saying that the seller is Morgan A. Stanley himself, but if it isn’t, we are very disappointed in Morgan A. Stanley. And we’re also hoping that Morgan took a whole ream of these out of his desk and is selling three for a $1M pop a few times over. And we want this because we cannot imagine the ineffable anticipatory agony that Morgan must have felt every time he reached for one of these things, handed it to someone, watched their eyes light up and say absurdly dumb shit like “Ohmigod, is this real?” or “Did you change your name?” or “Is this a typo?” He shoul...

Trade war would be ‘end of global recovery,’ says Citigroup economist

If tariffs from the U.S. or China become a reality, the result would be “a serious trade war,” Citigroup’s chief economist, Willem Buiter, told CNBC on Wednesday. “It would be the biggest self-inflicted wound since the great financial crisis,” Buiter said on “Power Lunch.” He added that, “It would be the end of the global recovery,” with problems beginning in the United States and China, but eventually spilling over into Europe, Japan and other countries. “It would be very disruptive, both for importers and exporters,” Buiter said. “And it would be a major cyclical downturn, depending on how intense and how long-lasting this episode would be.” On Tuesday, President Donald Trump met with Japanese Prime Minister Sh...

Judge Gifts World A Third Platinum Partners Trial

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons The salacious story of Platinum Partners seemed to have everything: Life insurance policies purchased in absence of the knowledge and approval of the insured, a leather-bound pay-to-play scandal involving the Rikers Island guard union, angry judges, FBI raids, massive redemptions that can’t be paid, bankruptcy filings, aborted plans to flee the jurisdiction, tax-dodging practitioners of indecent exposure at the dinner table, witness intimidation and a Whitney Tilson hot take. But no! There’s more, specifically defendants turning on one another and threatening to turn the upcoming trial into an incoherent soap opera. So we get two! (Three, actually, if you count the pay-to-play trial.) In a decision on Monday, U.S....

United Airlines is inspecting engine type that exploded on Southwest flight

United Airlines is inspecting a commonly used type of engine that exploded on a Southwest flight this week, blowing out a window and killing a passenger. United CEO Oscar Munoz said in a quarterly earnings call that the airline had started the inspections due to a service bulletin and that the airline will be “fully compliant.” Service bulletins are issued by manufacturers, the airline said. The CFM56-7B engine is one of the most widely used engines in the world, powering some 6,700 aircraft worldwide, according to its manufacturer, CFM International, a joint venture of General Electric and France’s Safran Aircraft Engines. CFM did not immediately respond to a request for comment about the bulletin. United has close to 700 of the engines, the airline’s chief operati...

Bill Ackman Would Not Change His Gender Just Win A Board Seat Because The Bill Ackman We Knew Is Truly Dead

We have known for some time now that Bill Ackman 2.0 is self-designed to be a gentler, quieter, and more contemplative version of the Bill Ackman that we know before it malfunctioned, but every passing week seems to offer us another glimpse at just how neutered the New Ackman has truly become. Speaking at the 13D Monitor Conference in Manhattan yesterday, Ackman (who we thought was no longer doing this type of thing) vaguely referred to Carl Icahn as “the devil” before saying that he meant it “in the most positive way.” He then touted how great Chipotle would become under his handpicked new CEO. From what we’re seeing, the whole thing sounds like a warmed-over Ackman performance. It makes us miss the old version. And what reportedly happened after makes us want to pour some out, for the Bi...

Passengers fail to wear oxygen masks properly aboard emergency Southwest flight

At least a few passengers aboard Southwest Flight 1380, which had to make an emergency landing on Tuesday after an engine failure, didn’t pay close attention to the safety demonstration prior to takeoff. A photo of passengers wearing their oxygen masks improperly circulated on social media in the aftermath of the incident. The masks covered only their mouths, whereas safety demonstrations instruct passengers to cover their nose and mouth. @BobbyLaurie: PEOPLE: Listen to your flight attendants! ALMOST EVERYONE in this photo from @ SouthwestAir# SWA1380today is wearing their mask WRONG. Put down the phone, stop with the selfies.. and LISTEN. **Cover your NOSE & MOUTH. # crewlife# psa# listen# travel# news# wn1380 The masks provide oxygen to passengers in emergencies up to 40,000 fe...