'We created a monster,' SoftBank CEO Masayoshi Son reportedly said of WeWork - Business Insider UK

• Masayoshi Son, CEO of Japanese mega-investor SoftBank, told colleagues that "we created a monster" in WeWork, the Financial Times reported.
• SoftBank will on Wednesday impose stricter governance standards on dual-class share structures after the WeWork fiasco, the FT said.
• SoftBank is expected to take a multibillion dollar writedown on WeWork, the FT said. 
• View Business Insider's homepage for more stories.

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Masayoshi Son, CEO of Japanese mega-investor SoftBank, told colleagues that "we created a monster" in WeWork after investing billions into the firm only to later bail it out, the Financial Times reported.

SoftBank last month bailed out the cash-strapped real estate firm to the tune of just over $8 billion, with an accelerated payment of $1.5 billion just to ensure the company didn't run out of money. SoftBank being one of the company's main backers, is now under scrutiny for the way it invests.

The FT also separately reported, citing unnamed sources, that SoftBank will on Wednesday impose stricter governance standards on dual-class share structures after the WeWork fiasco — an about-face for Son who the newspaper says is "known as a risk-addicted dealmaker." 

SoftBank is expected to take a multibillion dollar writedown on WeWork, the FT said. 

Prior to the bailout, SoftBank had invested more than $10 billion in WeWork and the office-sharing firm was valued at $47 billion at its peak. The firm planned to IPO and backers dreamed of a valuation of more than $100 billion.

But intense scrutiny over WeWork's governance and business model resulted in the firm indefinitely delaying its IPO, and its idiosyncratic cofounder Adam Neumann stepping down as CEO in September, followed by the bail out last month.

Son, the Financial Times cited a person close to him as saying, has been shaken by the ordeal. The Japanese magnate has said little publicly about WeWork since the funding deal, although he has said that he is "embarrassed" in general by SoftBank's missteps.

"We created a monster," Son told colleagues, according to the paper. And in reference to Neumann: "We gave him all the capital."

This, along with Uber, which has lost more than a quarter in value since going public, and according to CNBC cost the Japanese firm $600 million so far, is leading to investors worrying about the real value of SoftBank's ventures. 

"If SoftBank says this is the value, how much of that should you believe?" the FT cited Kirk Boodry, a technology analyst at Redex Holdings who publishes on Smartkarma, a research platform, as saying. 

WeWork and SoftBank did not immediately respond to a Business Insider request for comment. 

Read the Financial Times' report here.

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2019-11-05 10:50:42Z
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Facebook changes product branding to FACEBOOK - BBC News

Facebook is introducing new branding for its products and services in an attempt to distinguish the company from its familiar app and website.

Instagram and WhatsApp are among the services that will carry the new FACEBOOK brand in the next few weeks.

The main Facebook app and website will retain its familiar blue branding.

The new logo, which is in capital letters, uses "custom typography" and "rounded corners" so the company's other products and app look different.

The branding also appears in different colours depending on which product it represents. So, for example, it will be green for WhatsApp.

"We wanted the brand to connect thoughtfully with the world and the people in it," Facebook said. "The dynamic colour system does this by taking on the colour of its environment."

Facebook's chief marketing officer Antonio Lucio said: "People should know which companies make the products they use. We started being clearer about the products and services that are part of Facebook years ago.

"This brand change is a way to better communicate our ownership structure to the people and businesses who use our services to connect, share, build community and grow their audiences."

US Senator Elizabeth Warren has said she wants to break up the big tech companies such as Facebook, Amazon and Google and put them under tougher regulation.

This plan may be seen as Facebook's way of hitting back, although Ms Warren - posting on Facebook - said: "Facebook can rebrand all they want, but they can't hide the fact that they are too big and powerful. It's time to break up Big Tech."

Does rebranding always work?

Several other big companies have tried rebranding in the past:

• In 2001, British Airways turned tail on its plans to remove the red, white and blue Union flag from its aircraft and replace it with "world images"
• In the same year, Royal Mail rebranded as Consignia, only to swap back again a year later
• Dunkin' Donuts dropped the "Donuts" from its name last year to try to move more into the coffee industry and its share price has continued to rise
• The parent company of Paddy Power and Betfair started trading under the new name Flutter Entertainment in May this year. It said the new name "better reflected the diversity of the group".

Facebook has come under criticism recently over a variety of issues.

Its boss Mark Zuckerberg had to face US lawmakers last month to explain the company's policy on not fact-checking political adverts.

He also had to defend plans for a digital currency, talk about the social network's failure to stop child exploitation on the network, and was quizzed over the Cambridge Analytica data scandal.

Earlier in the year, Mr Zuckerberg said the firm was going to make changes to its social platforms to enhance privacy.

These included messages sent via Messenger being end-to-end encrypted, and hiding the number of likes an Instagram post receives from everyone but the person who shared it.

'If it ain't broke, don't fix it'

Manfred Abraham, chief executive of consultancy Brandcap, told the BBC: "I'm sure this will be a successful move for Facebook. After all, the parent brand remains strong, despite recent troubles, and reminding consumers that Instagram etc are all Facebook companies will assist with cross-membership.

"The rebrand is unsurprising as it is following a trend - that of simplification. Many organisations are choosing a strong, but pared-back visual identify and are shrugging off 'flair' in favour of plain."

However, Mr Abraham thought Facebook was correct to leave the logo on its flagship social media platform as it is.

"Facebook's main site doesn't need a rebrand. The old adage is true: if it ain't broke don't fix it."

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2019-11-05 11:29:01Z
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US futures point to higher open ahead of key economic data - CNBC

U.S. stock index futures were higher Tuesday morning after Wall Street posted a record close on Monday.

At around 5 a.m. ET, Dow futures rose 78 points and indicated a positive open of more than 62 points, while futures on the S&P 500 and Nasdaq were also higher.

Strong earnings, more promising economic data and optimism over a possible U.S.-China trade deal saw the Dow Jones Industrial Average join the S&P 500 and Nasdaq Composite at record highs on Monday.

The Dow's year-to-date gain now stands at around 18%, while the S&P 500 is up more than 22% and the Nasdaq more than 27% so far this year.

Market focus remains attuned to trade discussions, with Reuters reporting on Monday that China is pushing U.S. President Donald Trump to remove more tariffs imposed in September as part of the much touted "phase one" trade deal between the two nations.

Traders will also have eyes on a raft of economic data Tuesday morning. September balance of trade, import and export figures are due for release at 9:30 a.m. ET before November Redbook data at 9:55 a.m. ET.

Composite and services PMI (purchasing managers' index) numbers for October are expected at 10:45 a.m. ET, followed by non-manufacturing PMI and a host of other non-manufacturing figures at 11: a.m. ET.

On the earnings front, Allergan and Becton Dickinson are set to report before the bell on Tuesday.

- CNBC's Fred Imbert contributed to this report.

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2019-11-05 07:59:14Z
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The close: Energy stocks lead TSX higher - The Globe and Mail

Canada’s main stock index rose to a month’s high on Monday lifted by a 3.2-per-cent rally in energy stocks as oil prices rose on signs of progress in resolution of a trade dispute between the United States and China.

U.S. President Donald Trump suggested on Friday he could sign an agreement with China’s President Xi Jinping in the U.S. farm state of Iowa, while China’s Foreign Ministry said the two leaders have been in “continuous touch.”

The Toronto Stock Exchange’s S&P/TSX composite index was up 75.74 points, or 0.46 per cent, to 16,669.81, with the energy sector touching its highest since Oct. 7 as crude prices increased.

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The materials sector, which includes precious and base metals miners and fertilizer companies, slipped 0.3 per cent. The optimism muted demand for safe-haven gold.

The financial and industrial sectors both closed 0.7 per cent higher.

All three major U.S. indexes posted record closing highs on Monday, extending a recent run of gains, on hopes of a U.S.-China trade deal and an improving U.S. economy.

The Dow Jones Industrial Average rose 115.36 points, or 0.42 per cent, to 27,462.72, the S&P 500 gained 11.46 points, or 0.37 per cent, to 3,078.37 and the Nasdaq Composite added 46.80 points, or 0.56 per cent, to 8,433.20.

Beijing and Washington spoke Friday of progress in trade talks and U.S. Commerce Secretary Wilbur Ross said on Sunday licenses for U.S. companies to sell components to China’s blacklisted Huawei Technologies Co will come shortly.

Washington has effectively banned federal agencies from buying Huawei telecommunications equipment and barred U.S. companies from doing business with Huawei, citing national security.

Gold edged lower while the dollar gained on higher risk appetite as trade hopes grew after Ross said there was no reason a deal could not be on track for signing this month.

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A generally upbeat U.S. employment report on Friday added to optimism that the slowing U.S. economy was not headed toward recession.

“Market trends are being influenced by a better risk mood overall,” said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.

European shares rallied more than 1 per cent, with many reaching their highest level since January 2018. The STOXX 600 index of small, mid-sized and large companies across Europe surged to highs last seen in July 2015.

Tariff-exposed European miners gained 2.9 per cent while auto stocks also rose 2.9 per cent. Reports that Fiat Chrysler and Peugeot owner PSA aimed to sign a final merger agreement as early as next month also lifted stocks.

Earlier, trade hopes sent Asian stocks surging, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.3 per cent.

MSCI’s gauge of stocks across the globe gained 0.48 per cent while its emerging markets rose 1.34 per cent.

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“Signing these deals takes time. All that is needed for markets to be happy right now is for an agreement to be announced,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

The euro slipped as investors awaited Christine Lagarde’s first speech as European Central Bank president. But the single currency remained near its highest levels in weeks after Ross said in the interview that Washington may not slap tariffs on imported vehicles after “good conversations” with automakers in the European Union, Japan and Korea.

The dollar index rose 0.33 per cent, with the euro down 0.19 per cent to $1.1144. The Japanese yen weakened 0.43 per cent versus the greenback at 108.62 per dollar.

Euro zone and U.S. bond yields rose on optimism a U.S.-China trade deal appeared near.

Data on Monday showed morale among investors in the euro zone jumped in November to its highest since June.

Germany’s benchmark 10-year Bund yield was at -0.35 per cent while the benchmark 10-year U.S. Treasury note fell 17/32 in price to push its yield up to 1.7875 per cent.

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Spot gold dropped 0.4 per cent to $1,507.25 an ounce.

Oil prices rose on Monday, buoyed by an improved outlook for crude demand as better-than-expected U.S. jobs growth added to market hopes a preliminary U.S.-China trade deal would be reached this month.

Brent crude futures for January settled at $62.13 a barrel, up 44 cents, or 0.7 per cent. December U.S. crude futures rose 34 cents, or 0.6 per cent, to end at $56.54 a barrel.

Market optimism about progress in U.S.-China trade negotiations propelled U.S. stock indexes to record highs on Monday, elevating oil. Energy shares gained the most of the 11 major S&P 500 sectors.

Chinese President Xi Jinping and U.S. President Donald Trump have been in continuous touch through “various means,” China said on Monday, when asked when and where the two leaders might meet to sign a trade deal.

“Both sides (China and the United States) are talking up the trade deal to a large degree. And you have the Federal Reserve leaning into this better-looking economic situation, which lifts all boats,” said John Kilduff, a partner at Again Capital LLC.

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On Friday, prices jumped by about $2 a barrel after U.S. officials said a deal could be signed this month.

Improved U.S. jobs growth numbers in October and the upward revisions of the two previous months, reported on Friday, also eased fears of a global economic slowdown that would slow crude demand, oil-market analysts said

Reuters

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November 04, 2019 at 06:00PM

Vancouver-based cryptocurrency exchange shut down, taken over by B.C. Securities - CityNews Vancouver

VANCOUVER (NEWS 1130) – A Vancouver-based cryptocurrency exchange has shut its doors.

The BC Securities Commission says it has taken over the offices of Einstein Exchange, a crypto-asset trading platform, to protect customers.

A court-ordered receiver has been appointed.

Another warning to be careful when buying or selling cryptocurrencies. BC Securities Commission shuts down Einstein Exchange following customers complaints. RCMP notified about concerns raised by former employee.

— Bruce Claggett (@BruceClaggett) November 5, 2019

BCSC says it got numerous complaints from customers who were not able to access their assets on the company’s website.

It has also been in contact with the RCMP about concerns raised by a former Einstein employee about potential money laundering.

A second cryptocurrency exchange, Nanaimo-based ezBtc.ca, is also under scrutiny after receiving complaints.

“The complainants told us they had bought crypto-assets through ezBtc and have not been able to gain access to their assets. […] Customer assets are at risk. Anyone who invested through ezBtc should consider consulting a lawyer about their options for retrieving their money,” Elise Palmer with the BCSC said in an email.

The Securities Commission also says Canadians should be cautious about buying or selling crypto assets, and none of these trading platforms have been authorized in the province.

– With files from Richard Dettman and the Canadian Press

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November 05, 2019 at 07:51AM

CPPIB buys renewable power company Pattern Energy - BNNBloomberg.ca

Canada Pension Plan Investment Board agreed to buy Pattern Energy Group Inc. in a deal valued at US$2.6 billion as big investors chase wind and solar farms that had lost luster on Wall Street.

The Toronto-based pension giant will pay US$26.75 a share for Pattern, a 3.8-per-cent discount to Friday’s closing price, according to a statement. Pattern’s stock is up about 16 per cent since August following reports that the so-called yieldco had drawn interest from suitors including Brookfield Asset Management Inc.

Yieldcos, which operate wind and solar farms and promise growing dividends, were darlings on Wall Street five years ago and fell out of favor as clean-energy giant SunEdison Inc. stumbled toward bankruptcy. But large investors including BlackRock Inc., Global Infrastructure Partners and Brookfield see significant value in their clean-energy projects, which boast steady returns and long-term contracts.

“The yieldco as a vehicle has become somewhat maligned,” BloombergNEF analyst Ethan Zindler said in an interview. “These portfolios could find a better home privately.”

Pattern’s shares fell as much as 3.3 per cent to US$26.89 Monday. That’s still above CPPIB’s price, indicating that investors believe a higher offer may be pending. The deal gives Pattern 35 days to entertain other suitors.

Pattern Energy Group is the latest yieldco to draw a buyout offer. Last year, Swiss asset manager Capital Dynamics bought the yieldco 8Point3 Energy Partners LP for US$977 million. The previous year, Brookfield bought TerraForm Global Inc. for US$750 million. It also bought a controlling stake in TerraForm Power Inc. from SunEdison.

Yieldcos emerged more than six years ago and became major growth engines for U.S. renewable power. They allowed developers to sell solar farms to publicly-traded yieldcos they controlled and reinvest the cash to build more. Then SunEdison collapsed after relying on two yieldcos to finance a dizzying buying binge. Questions arose about its governance, and investors began to doubt whether the yieldcos could continue to pay rising dividends.

Still, the yieldco model may be making a comeback. Goldman Sachs Group Inc. has launched one that has amassed at least one gigawatt of solar arrays, enough to power about 725,000 homes. The firm has sketched out plans to take the company public in the next few years.

Development Arm

Pattern has 28 wind and solar projects in the U.S., Canada and Japan, as well as development projects in Mexico. The San Francisco-based company on Monday reported US$119 million in revenue in the third quarter, meeting the average analyst estimate, according to a separate statement.

Separately, CPPIB has agreed to purchase Pattern’s development arm at an undisclosed price, said Bruce Hogg, head of power & renewables at the Canadian fund.

“Pattern is attractive because it provides scale for us and a portfolio of assets that fits our requirements,” Hogg said in an interview.

Pattern Chief Executive Officer Michael Garland, who has run the company for more than a decade, will lead the combined enterprise that includes both Pattern Energy and Pattern Energy Group Holdings 2 LP, a development company. The transaction is expected to close by the second quarter. Pattern will continue paying quarterly dividends until the deal closes, according to the statement.

The deal will be financed with US$2.6 billion of equity from CPPIB and includes US$1 billion in committed debt financing, according to a Pattern presentation Monday.

Pattern “reviewed multiple bids as part of a thorough process that involved multiple parties,” Chairman Alan Batkin said in the statement.

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November 05, 2019 at 02:24AM

University of Waterloo researcher says 'artificial leaf' can turn CO2 into fuel - CBC.ca

An Ontario researcher says he has discovered a new and inexpensive way to convert carbon dioxide into a liquid fuel using sunlight.

University of Waterloo engineering professor Yimin Wu says the process mimics photosynthesis, which is why he's dubbed it "artificial leaf."

He says the discovery could have many applications and help in the fight against global warming.

Carbon dioxide conversion has long held the potential to reduce greenhouse gases that contribute to climate change.

Wu says the oil, steel and automotive companies could use the technology to reduce their carbon dioxide emissions.

The study was published today in the journal Nature Energy.

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November 05, 2019 at 01:16AM