Gini Olom

Rabu, 10 April 2019

Lyft takes a big hit after reports Uber is seeking a valuation of up to $100 billion - Business Insider

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Lyft shares plunged as much as 7.3% on Wednesday after reports that rival Uber was seeking a valuation of between $90 billion and $100 billion.
Lyft shares have dropped 27% from where they opened when the company went public last week.
Watch Lyft trade live.

Lyft shares dropped as much as 7.3% on Wednesday after it was reported its rival, Uber, was seeking a valuation of between $90 billion and $100 billion when it officially files to go public.

Uber plans to sell around $10 billion worth of stock when it officially files to go public on Thursday, Reuters reported on Tuesday, citing people familiar with the matter.

Uber's new projected valuation, according to Reuters, is below that of prior $120 billion estimates. In contrast, Lyft's market cap on Tuesday was just under $20 billion, having raised about $2.69 billion in its IPO last month.

Lyft has traded in a volatile fashion since its debut, which isn't uncommon for newly minted public companies.

The stock priced at $72 a share the evening before its IPO in late March, then officially opened at $87.24 a share, then dropped below its IPO price in its first full day of trading. It's now down about 27% from its opening price, and down 11% from where the stock initially priced.

Lyft analysts are concerned about the company's uncertain path to profitability and a highly competitive ride-hailing space. Regulatory uncertainties may also pose a challenge, some analysts say, while others say the stock is overvalued.

"While we believe the ridesharing market will continue to grow and expect LYFT to be a prime competitor, in our view, current valuations reflect an overly optimistic view of consumer behavior in the US," said Michael Ward, an analyst at Seaport Global, in a note to clients last week.

Now read more about Lyft on Markets Insider:

Lyft shares.Markets Insider

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https://www.businessinsider.com/lyft-stock-price-down-after-reports-of-ubers-expected-valuation-2019-4

2019-04-10 15:30:21Z
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Cashierless Amazon Go stores are planning to accept cash - TechCrunch

Amazon Go convenience stores will begin to accept cash, according to a report this morning from CNBC, which Amazon confirmed. The retailer didn’t say when cash would be added to existing stores as a payment option, however, only that it was planned. The issue with the cashierless, automated Amazon Go stores is that they require customers to use a stored bank or credit card associated with their Amazon account to make a purchase. This can be discriminatory towards the un-banked and under-banked, who typically pay with cash.

CNBC points out also the change comes at a time when many cities are enacting legislation that would ban cashless stores – that is, stores in some markets will be required to accept cash, as a means of catering to the unbanked who account for around 8.4 million (6.4%) of U.S. households.

Philadelphia last month became the first store to ban cash, the report notes, followed by the state of New Jersey. Other cities are considering this, as well, including New York, San Francisco and Chicago.

Amazon may be trying to get ahead of the legislation by working to accept cash in its cashierless stores before these laws spread across the U.S.

But it remains to be seen how Amazon will implement cash payments. Will it actually staff its cashierless stores with a cashier, or will it go the self-checkout route, where a machine takes the cash payment through inserted bills and then dispenses change?

In either case, the need to accept cash payments could dampen the store’s performance, as it could create lines and bottlenecks in the stores and slow the stores high performance. If self-checkout machines were used, there’s overhead in stocking them with cash, maintenance, and helping customers when they inevitably break down. But a dedicated cashier could mean an expanded headcount, and the costs associated with additional employees.

According to one analysis, Amazon Go’s Seattle Store has been generating 4 to 5 the number of inventory turns per year compared to typical retailers, and its annual sales per square foot of the selling area was $2,700. These figures are expected to grow as more customers shop the stores, along with other tweaks Amazon may make to drive more sales. But this level of performance is possible because of the automation.

CNBC caught wind of Amazon’s plans through a tip from an insider who sent the site a recording of an Amazon employee meeting, where Amazon’s senior vice president of physical stores, Steve Kessel, was responding to a question about the “discrimination and elitism” at Amazon Go stores.

The retailer confirmed his response, where he said Amazon was “planning additional payment mechanisms.” Specifically, Amazon said customers would be able to check out, pay with cash, and receive change.

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https://techcrunch.com/2019/04/10/cashierless-amazon-go-stores-are-planning-to-accept-cash/

2019-04-10 14:04:39Z
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Exclusive: US lawmakers introduce bill to boost electric car tax credits - StreetInsider.com

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https://www.streetinsider.com/Litigation/Exclusive:+U.S.+lawmakers+introduce+bill+to+boost+electric+car+tax+credits/15357994.html

2019-04-10 13:03:00Z
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U.S. Core Inflation Unexpectedly Cools Amid Apparel Data Shift - Bloomberg

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https://www.bloomberg.com/news/articles/2019-04-10/u-s-core-inflation-unexpectedly-cools-amid-apparel-data-shift

2019-04-10 12:30:00Z
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European Central Bank holds interest rates amid gloomy economic outlook - CNBC

The European Central Bank (ECB) held interest rates steady on Wednesday, shortly after the International Monetary Fund (IMF) sharply downgraded its economic growth forecast for the euro zone economy.

The ECB has been forced to backtrack its plans to tighten monetary policy in recent weeks, amid an intensifying climate of economic gloom.

The central bank unveiled a series of fresh stimulus measures last month, and market participants will be closely monitoring comments from ECB President Mario Draghi at around 1:30 p.m. London time.

Interest rates on its marginal lending facility and deposit facility will remain unchanged at 0%, 0.25% and -0.40%, respectively. These have been at record lows following the euro sovereign debt crisis of 2011 in an effort to boost inflation and stimulate growth.

The euro was up around 0.15% at $1.1277 shortly after the announcement at 12:45 p.m. London time.

The euro zone's central bank, for those nations that share the single currency, ended its massive bond-buying program back in December. But, a rapid decline in sentiment and weak demand from abroad has ratcheted up the pressure for policymakers to unveil even more stimulus.

ECB policymakers are expected to address market speculation about further delays to their first post-crisis rate hike and the side effects of years of negative rates.

On Tuesday, the IMF slashed its forecast for global economic growth this year, saying a slowdown could force world leaders to coordinate stimulus measures.

The IMF also sharply downgraded growth in the euro zone. It now expects the bloc to grow at 1.3% in 2019 — 0.6% lower than its forecast had been six months ago.

Meeting earlier than usual so top policymakers can attend the IMF's Spring meeting in Washington D.C. this week, investors are anxious to understand more about the so-called two-tiered system for bank reserves.

Draghi has already said the ECB must decide whether it needs to mitigate the side-effects of negative rates.

As such, one option under consideration is a tiered deposit rate. This aims to protect banks from part of the cost incurred by negative rates — akin to moves taken by central banks in Switzerland and Japan.

The approach would mean that banks are exempted in part from paying the ECB's -0.40% annual charge on their excess reserves. That would boost the banks' profits at a time when many lenders struggle with low profitability.

Some members of the ECB's Governing Council are said to be in favor of such a move.

However, forthcoming personnel changes at the ECB could risk delaying a discussion about a two-tiered system and the likelihood of an interest rate hike over the coming months.

Alongside ECB Chief Economist Peter Praet, Draghi is scheduled to step down in October and policymakers are thought to be reluctant to negotiate a fundamental revamp of monetary policy before new leaders take charge.

One example of stimulus introduced by the central bank last month was a series of quarterly targeted longer-term refinancing operations (TLTRO-III). The program, which is designed to stimulate bank lending in the euro zone, is set to start in September 2019 and end in March 2021.

The TLTROs are loans that the ECB provides at cheap rates to banks in the euro area. As a result, lenders are able to provide better credit conditions to customers, which in turn stimulates the real economy.

This mechanism was first introduced in 2014, before being brought in for a second time in March 2016.

— CNBC's Silvia Amaro contributed to this report.

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https://www.cnbc.com/2019/04/10/ecb-interest-rates-draghi-under-pressure-amid-gloomy-economic-outlook.html

2019-04-10 11:45:30Z
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Uber IPO; Central banks in focus; Delta earnings - CNN

An IPO of that size would be one of the biggest in tech history. The company could make registration documents connected to the sale available Thursday, according to Reuters.

The news agency reported that Uber was targeting a valuation of up to $100 billion. Uber declined to comment on the report.

2. Delta earnings: Delta (DAL) is set to report its results before the opening bell.

The airline has already said its first quarter earnings will be better than expected thanks to fuel costs rising at a less dramatic pace than it had originally anticipated.

Delta has an advantage compared to many other US carriers — it does not have any Boeing 737 Max jets, which has allowed it to avoid headaches associated with the aircraft's grounding.

Rival American Airlines (AAL) cut its revenue forecast due to the grounding of the aircraft on Tuesday, and its stock dropped 2% as a result.

3. Central banks in focus: The European Central Bank will announce its latest decision on interest rates at 7:45 a.m. ET. A press conference will follow at 8:30 a.m. ET.

No policy changes are expected but ECB President Mario Draghi could provide an assessment of economic data that suggests continued weakness in major eurozone economies.

Draghi's term as president of the central bank ends in October and speculation about who will replace him is mounting.

At 2:00 p.m. ET, the US Federal Reserve will release minutes from its March meeting. The Fed held rates steady, lowered its economic forecasts and signaled that no further rate hikes are coming this year.

Investors will hunt for clues about whether some members think the Fed should cut rates — which both President Donald Trump and his Fed board pick Stephen Moore have called for.

4. Brexit summit: British Prime Minister Theresa May is traveling to Brussels to seek a Brexit extension that would prevent her country from crashing out of the bloc without a deal on Friday.

"The odds still favor the UK being offered a lengthy extension to Brexit negotiations, with strict conditionality," said Kit Juckes, a strategist at Societe Generale.

Juckes said that outcome would be positive for the pound, which has been volatile in recent weeks.

Watch CNN Business' live digital show 'Markets Now' at 12:45 p.m. ET

5. Global market overview: US stock futures were pointing higher.

European markets opened mostly up, following a mixed trading session in Asia.

The Dow Jones industrial average plunged 0.7% on Tuesday. The S&P 500 and the Nasdaq both dropped by 0.6%.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

6. Earnings and economics: Bed Bath & Beyond (BBBY) will report earnings after the close.

Tesco (TSCDF), the biggest supermarket chain in Britain, said that its full year profit surged by a third despite an uncertain market. It also announced a dividend hike.

UK GDP grew 0.3% in the three months to February, according to the Office for National Statistics. Construction output dropped 0.6% over the period, but services grew 0.4%.

US inflation data for March will be published at 8:30 a.m. ET. Weekly US crude inventories data will be released at 10:30 a.m. ET.

7. Coming this week:
Wednesday — Delta Air Lines (DAL), LVMH (LVMHF) and Bed Bath & Beyond (BBBY) earnings; US March consumer prices; Fed minutes; ECB rate decision; UK GDP and EU summit on Brexit
Thursday — Rite Aid (RAD) earnings; Disney (DIS) investor day; India election polling begins
Friday — JPMorgan Chase (JPM) and Wells Fargo (WFC) earnings; China export data, Britain's current deadline to leave the European Union

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https://www.cnn.com/2019/04/10/investing/premarket-stocks-trading/index.html

2019-04-10 09:28:00Z
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2 Dividend Blue Chips Worth Owning And 1 I'll Avoid No Matter How Cheap It Gets - Seeking Alpha

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2 Dividend Blue Chips Worth Owning And 1 I'll Avoid No Matter How Cheap It Gets Seeking Alpha

AT&T is a beloved high-yield dividend aristocrat and owned by many conservative income investors looking for safe and recession-resistant dividends. While it ...

https://seekingalpha.com/article/4253665-2-dividend-blue-chips-worth-owning-1-avoid-matter-cheap-gets

2019-04-10 05:24:00Z
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