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Senin, 13 Mei 2019

Supreme Court rules against Apple in App Store antitrust case - CNBC

The Supreme Court on Monday ruled 5-4 against Apple in a case involving its signature electronic marketplace, the App Store, allowing iPhone users to move forward with an antitrust suit against the company.

The iPhone users argued that Apple's 30% commission on sales through the App Store is an unfair use of monopoly power that results in inflated prices passed on to consumers.

Apple argued that only app developers, and not users, should be able to bring such a lawsuit. But the Supreme Court, in an opinion authored by Justice Brett Kavanaugh, rejected that claim.

"Apple's line-drawing does not make a lot of sense, other than as a way to gerrymander Apple out of this and similar lawsuits," Kavanaugh wrote.

Shares of Apple, already battered by trade concerns, were down more than 5%, lagging the broader market.

The result was widely expected after arguments in November in the case, Apple v. Pepper, during which the justices seemed skeptical of Apple's arguments.

The case split President Donald Trump's two nominees to the high court. In a dissent joined by his fellow conservatives, Justices John Roberts, Clarence Thomas and Samuel Alito, Justice Neil Gorsuch wrote that the majority created an "artificial rule."

The legal battle over the company's online marketplace has dragged on for nearly a decade.

The result of the iPhone users' litigation could affect the way that Apple, as well as other companies that operate electronic marketplaces like Facebook, Amazon and Alphabet's Google, structure their businesses. For Apple, hundreds of millions of dollars in penalties could hang on the outcome.

Apple did not immediately respond to a request for comment.

Read the full opinion below:

This is breaking news. Check back for updates.

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https://www.cnbc.com/2019/05/13/supreme-court-rules-against-apple-in-app-store-antitrust-case.html

2019-05-13 14:47:52Z
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Supreme Court rules against Apple, allowing lawsuit targeting App Store to proceed - The Washington Post

The Apple Inc. logo is displayed above a store entrance in Shanghai. (Qilai Shen/Bloomberg)

May 13 at 10:23 AM

Apple suffered a significant defeat at the Supreme Court on Monday, when the justices ruled that consumers could forge ahead with a lawsuit against the iPhone giant over the way it manages its App Store.

The 5-4 decision could spell serious repercussions for one of Apple’s most lucrative lines of business, and open the door for similar legal action targeting other tech giants in Silicon Valley.

Justice Brett M. Kavanaugh joined the liberal justices in the majority.

At the heart of the case is Apple's handling of iPhone and iPad apps created by third-party developers and made available on its heavily curated App Store. Apple long has taken a commission on every paid app sold through this portal, rankling some developers that essentially see it as a tax.

The policy led iPhone owners to band together in 2011 with a class-action lawsuit, led by plaintiff Robert Pepper, who argued that consumers ultimately felt the brunt of Apple’s policies because developers raised the prices of their apps. These consumers brought their case under federal antitrust laws, arguing that Apple’s practices made it a monopoly.

In response, Apple pointed to decades-old Supreme Court precedent that found only the “direct purchasers” of a service are eligible to bring such an antitrust lawsuit in the first place. The iPhone giant said it only acted as the intermediary, providing a storefront where consumers found and purchased the apps they later installed on their phones.

An organization representing other tech giants, including Amazon, Facebook and Google, filed legal briefs in Apple’s defense, telling the Supreme Court that a decision allowing the lawsuit to proceed would put “these platform services. . . under threat.”

Some of the justices initially seemed skeptical of Apple’s claims. During oral arguments last year, conservative Justice Samuel Alito questioned if the precedent that Apple cited currently “stands up” in the digital ecosystem.

“From my perspective, I’ve just engaged in a one-step transaction with Apple,” said liberal Justice Elena Kagan at one point during the proceedings.

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https://www.washingtonpost.com/technology/2019/05/13/supreme-court-rules-against-apple-allowing-lawsuit-targeting-app-store-proceed/

2019-05-13 14:25:42Z
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Bed Bath & Beyond CEO out amid ongoing activist pressure - Chain Store Age

C-SUITE

The longtime chief executive of Bed Bath & Beyond has stepped down amid ongoing pressure from activist investors who blame him for the chain’s faltering performance and are pushing for changes.

The home goods chain announced that Steven Temares has stepped down as CEO and resigned as a member of the board, effective immediately. Mary Winston, who recently joined the board, has been appointed interim chief while the company searches for a permanent replacement. In addition, new board member Andrea Weiss, a longtime retail executive and consultant, will oversee the company’s strategy and business transformation plans and work closely with Winston.

Winston’s previous retail experience includes serving as executive VP and CFO of Family Dollar Stores Inc. and senior VP and CFO of Giant Eagle. She also served as executive VP and CFO at Scholastic Corporation. In searching for a permanent leader, Bed Bath & Beyond said it will focus on individuals who have transformation and innovation experience “in the retail sector.

“Bed Bath & Beyond has a significant opportunity to drive value creation by building on its great brands and strong customer affinity,” said Patrick Gaston, independent chairman of the board. “As the company continues its efforts to improve its financial performance and enhance its competitive position, the board determined that now is the right time to identify the next generation of leadership.”

Temares, a 27-year Bed Bath & Beyond veteran, has been CEO of the chain since 2003. The management shake-up comes as Bed Bath & Beyond has been under mounting pressure from a group of activist investors — Legion Partners Asset Management, Macellum Advisors and Ancora Advisors — to replace the entire board and to oust Temares. The group has been outspoken in its criticism of Bed Bath & Beyond ‘s performance and recently released a 100-plus page document that detailed Bed Bath & Beyond’s “stale retail perspective” and called for the immediate removal of Temares, blaming him for more than a decade of underperformance.

Prior to releasing the document, the group launched an effort to replace Bed Bath & Beyond’s entire 12-person board with a slate of 16 nominees. In response, the chain announced that two members would depart the board, decreasing the size to 10. (The retailer noted that with the departure of Temares, the board goes down to nine members). investors labeled the move as “too little, too late.” Last week, Legion Partners filed a lawsuit against Bed Bath & Beyond, saying that the company bypassed shareholder rights in overhauling the slate of directors.

Analyst Neil Saunders, managing director of GlobalData Retail, commented that the resignation of Temares as CEO is a “necessary first step in revitalizing the fortunes of the beleaguered retailer.” He noted that under Temares, the chain lost market share as it fell behind peers and failed to keep pace with a changing homewares market.

“However, as we have said before, shuffling the management team will not, in and of itself, produce the change that is required,” Saunders said. “As such, Bed Bath & Beyond now needs to search for a leader who can put in place a plan to refashion the company to the modern realities of retailing.”

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https://www.chainstoreage.com/c-suite-1/bed-bath-beyond-ceo-out-amid-ongoing-activist-pressure/

2019-05-13 14:03:15Z
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Bed Bath & Beyond CEO Steven Temares steps down 'immediately' and resigns from board - CNBC

Signage is displayed outside of a Bed Bath & Beyond Inc. store in Los Angeles, California, U.S., on Monday, Sept. 19, 2016.

Patrick T. Fallon | Bloomberg | Getty Images

Bed Bath & Beyond announced Monday that CEO Steven Temares is stepping down, "effectively immediately," as activist investors push for changes at the retailer.

It said current board member Mary Winston will serve as interim CEO until a replacement is found. Temares is also resigning from Bed Bath & Beyond's board, the company said.

"The board determined that now is the right time to identify the next generation of leadership," said Patrick Gaston, independent chairman of the retailer's board.

Bed Bath & Beyond, faced with pressure from activist investors Legion Partners Asset Management, Macellum Advisors and Ancora Advisors, recently appointed five new independent members to its board. The activists had been pushing to replace the entire board and to oust Temares as CEO.

Temares has been CEO since 2003 but had held various other roles at the company for nearly three decades.

Bed Bath & Beyond has been struggling to grow sales as more shoppers head online to platforms like Amazon. It laid off nearly 150 people in March, which also impacted its Christmas Tree Shops business, a discount home decor chain it acquired in 2003.

The company also said Monday that Andrea Weiss, a recent appointment to the board, will head the retailer's Business Transformation and Strategy Review Committee, "which will be responsible for ensuring that all aspects of the Company's ongoing business transformation are addressed."

Bed Bath & Beyond shares jumped 2.8% in premarket trading following Monday's announcement. The stock has gained nearly 40% this year.

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https://www.cnbc.com/2019/05/13/bed-bath-beyond-ceo-steven-temares-steps-down.html

2019-05-13 13:04:59Z
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62% of millennials say they're living paycheck to paycheck - CNBC

Almost two-thirds of millennials say they're living paycheck to paycheck and only 38% feel financially stable, according to a new survey from Charles Schwab.

Millennials, more than any other generation surveyed by Schwab, feel the most insecure when it comes to their finances. That's according to roughly 380 millennials (ages 23 to 38) surveyed for Schwab's 2019 Modern Wealth report.

Yet millennials also say they spend an average of $478 a month on "nonessential" purchases, such as dining out, entertainment, luxury items and vacations. That's less than the $587 Gen Xers report spending, but more than the $359 spent by baby boomers.

"It may seem odd that when we look at statistics that say so many millennials are living paycheck to paycheck, but on the other hand, they're overspending," says Farnoosh Torabi, personal finance author and host of the "So Money" podcast. Schwab partners with Torabi's Stacks House, a pop-up experience that promotes financial independence for women.

But while it may seem counterintuitive, it's the reality many millennials face, she says. "When your financial life is in disarray, chances are, you will overspend," she tells CNBC Make It. "Emotions around money lead us to make irrational choices."

It's not just a spending problem

It may be easy to criticize millennials for simply spending too much, but other issues are also at play, Terri Kallsen, Schwab's executive vice president of investor services, tells CNBC Make It.

"Spending is not the enemy that we might think that it is," she says. As a generation, millennials also are facing systemic financial issues that can feel overwhelming. They generally carry more debt than previous generations did at their age, for example. One major reason for that is student loans. The number of households with student loan debt doubled from 1998 to 2016, Pew Research Center found. The median amount of loan debt millennials carried was $19,000, significantly higher than Gen Xers' balance of $12,800 at the same age.

Student loans are not the only kind of debt millennials hold. About 40% of millennials (defined here as those 20 to 35 years old) have credit card debt, according to a recent survey by LightStream, the online lending division of SunTrust Bank.

Millennials ages 25 to 34 had an average of $36,000 in debt last year, excluding home mortgages, according to Northwestern Mutual's 2018 Planning & Progress Study.

Rising home costs and the fact that salaries just don't go as far as they once did to cover the necessities also adds to the pressure.

"When you're saddled with student loan debt, when you have credit card debt, when you don't have a lot of financial literacy, that can lead you to making unhealthy decisions with your money, including overspending," Torabi says.

It's about finding 'balance'

While managing your money is part math, most of it comes down to mindset, Torabi says.

Adds Kallsen: "We want people to have good experiences in life, but the most important thing is that people find the right balance so that spending doesn't impact their long-term financial security."

You need to find a strategy that works for you and allows you to have rewarding life experiences and save for the future. "Too much of any one thing is not a good thing for your overall biochemistry," Kallsen says. "And too much of any one thing, from a finance standpoint, is not a good thing for your overall financial plan."

If you're trying to reduce your spending, the first step is to get organized about what you spend and how you spend it, Saundra Davis, a financial coach and adjunct professor at Golden State University, tells CNBC Make It. "Know where you are and know what you want," she says.

Be really clear with yourself about what you want and what's achievable. And be realistic, she says. Don't expect yourself to go immediately from saving nothing to putting away $400 a month. If you can barely save $40, start by trying to save $40.

Surround yourself with people and influences that will help you make healthy financial decisions. "If you're hanging out with people who are constantly spending money, constantly keeping up with the Joneses, guess what — that's going to have a big impact on your bottom line as well," Torabi says.

Don't miss: 52% of Americans have cried about money—but this simple 3-step plan can help

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2019-05-13 11:37:28Z
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62% of millennials say they're living paycheck to paycheck - CNBC

Almost two-thirds of millennials say they're living paycheck to paycheck and only 38% feel financially stable, according to a new survey from Charles Schwab.

It's not just a spending problem

It may be easy to criticize millennials for simply spending too much, but other issues are also at play, Terri Kallsen, Schwab's executive vice president of investor services, tells CNBC Make It.

Millennials ages 25 to 34 had an average of $36,000 in debt last year, excluding home mortgages, according to Northwestern Mutual's 2018 Planning & Progress Study.

Rising home costs and the fact that salaries just don't go as far as they once did to cover the necessities also adds to the pressure.

It's about finding 'balance'

While managing your money is part math, most of it comes down to mindset, Torabi says.

Adds Kallsen: "We want people to have good experiences in life, but the most important thing is that people find the right balance so that spending doesn't impact their long-term financial security."

Don't miss: 52% of Americans have cried about money—but this simple 3-step plan can help

Like this story? Subscribe to CNBC Make It on YouTube!

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https://www.cnbc.com/2019/05/10/62-percent-of-millennials-say-they-are-living-paycheck-to-paycheck.html

2019-05-13 11:02:29Z
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Dow futures fall over 300 points as U.S.-China trade talks appear stalled - MarketWatch

Wall Street was setting up for a tough start to the week on Monday, with Dow Jones Industrial Average futures down over 300 points as investors waited for countermeasures from China after trade talks with the U.S. appeared to end in a stalemate.

How did the benchmark indexes fare?

Dow futures YMM9, -1.14% fell 311 points, or 1.2%, to 25,653, while S&P 500 futures ES, +1.86% dropped 36.40 points, or 1.2%, to 2,850.50. Nasdaq-100 futures NQM9, -1.59% slid 127.75 points, or 1.7%, to 7,482.50.

On Friday, the Dow Jones Industrial Average DJIA, +0.44% rose 114.01 points, or 0.4%, to end at 25,942.37, recovering from a deficit of more than 350 points. The S&P 500 index SPX, +0.37% gained 0.4% to 2,881.40, while the Nasdaq Composite Index COMP, +0.08% climbed 0.1% to 7,916.94.

For the week, the Dow fell 2.1%, its biggest weekly loss since March. The S&P saw a 2.2% weekly fall and the Nasdaq shed 3%, the biggest losses for both since the week ending Dec. 21.

Read: Why the stock market is at the mercy of the U.S. consumer

What drove the market?

Trade tensions that drove volatility for stocks last week were rebooting Monday, as investors faced up to the fact that a deal between the U.S. and China could take longer than they expected. Talks in Washington ended with no agreement on Friday.

The Trump administration said it was ready to impose 25% tariffs on another $300 billion worth of Chinese goods, nearly all that country’s imports, after that duty was lifted to 10% as of Friday. Investors are now waiting for retaliatory measures from Beijing. The country’s chief negotiator, Vice Premier Liu He, has demanded tariffs on Chinese exports to the U.S. be lifted as a condition for striking a deal.

In several tweets over the weekend U.S. President Trump tweeted that the U.S. was in an advantageous position over trade, though White House economic adviser Larry Kudlow admitted Sunday that “both sides” will feel the pain. His comment that Trump and China’s President, Xi Jinping, may meet at the Group of 20 international conference in June failed to soothe investors.

Trump early Monday continued to send tweets regarding the talks, arguing that there was “no reason” for U.S. consumers to pay tariffs and that companies would leave China to avoid the duties if a deal isn’t reached.

A Sunday editorial in the Global Times, a daily Chinese tabloid newspaper published by the Communist Party, said the “fierce U.S. offensive is irrational,” and the idea that China cannot bear a trade war is “a fantasy and misjudgment.”

“China has been pushing forward the bilateral talks with a high sense of responsibility and maximized sincerity, but it will never yield to the extreme pressure from the U.S., or compromise on matters of principle,” said a Monday op-ed in The People’s Daily, an official newspaper of the Central Committee of the Communist Party

With no economic data on the calendar, investors were likely to keep the focus on those tensions. Boston Fed President Eric Rosengren and Fed Vice Chairman Richard Clarida were each set to speak at separate conferences on Monday, starting at around 9 a.m. Eastern Time.

What are strategists saying?

“Any good will to risk assets on Friday has faded through Asia, and there the preservation of capital is the overriding theme, although there is absolutely no panic,” said Chris Weston, head of research at Pepperstone.

“Protectionism and the impact that can have on demand can be hard to model, and it feels that with these dynamics in play the market will further de-risk, with traders wanting a return of their equity, as opposed to on their equity,” Weston added.

How are other assets trading?

Trade worries weighed on Asian markets, where the Shanghai Composite SHCOMP, -1.21% closed down 1.2% and other major indexes logged losses of 1% or more. Europe followed suit with the Stoxx Europe 600 SXXP, -0.53% down 0.5%.

As investors backed out of equities, haven assets such as the Japanese yen got a bid, with the yen rising 0.3% to ¥109.67 against the dollar DXY, -0.03% But gold GCM9, -0.27% slipped about 0.3%. Industrial metals were down across the board with copper HGN9, -1.10% off 1% to $2.740 a pound.

Oil prices CLM9, +1.39% were climbing after Saudi Arabia said two oil tankers were attacked near the Strait of Hormuz early Sunday.

See: Strait of Hormuz: Oil ‘choke point’ in focus as U.S. ends Iran waivers

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https://www.marketwatch.com/story/dow-futures-drop-over-200-points-as-u-s-china-trade-talks-appear-stalled-2019-05-13

2019-05-13 09:49:00Z
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