Posts by Deirdre Hughes

  • CEO: This is the biggest Achilles heel for the global economy

    Deirdre Hughes at Yahoo Finance 1 yr ago

    The U.S. economy grew at a slightly stronger pace in the third quarter than previous estimates showed, up 2.1% versus the initial estimate of 1.5%, according to the latest estimates from the Commerce Department. The report also showed that corporate profits slowed in the third quarter.

    Despite an unemployment rate at its lowest level since 2008, the U.S. economy still faces “major headwinds,” according to EY Chairman and CEO Mark Weinberger, who says there’s an “uncertainty tax” slowing down business investment and hiring.

    The causes of that uncertainty are far-reaching, from geopolitical concerns like the current power struggle between Russia and the United States over Syria to the uncertainty surrounding U.S. monetary policy and the Federal Reserve’s long-awaited decision whether and when to raise interest rates.

    “All these issues really do affect [capital expenditures],” says Weinberg, who served in both the Clinton and George W. Bush administrations. “We’ve seen that go down quarter after quarter after quarter. And while the unemployment rate’s come down, the overall employment rate is still near a 30-year low, and so we still have major headwinds.”

    More from Yahoo Finance

  • Bob Nardelli: I’d be careful on equities right now

    Deirdre Hughes at Yahoo Finance 1 yr ago

    The Dow (^DJI) is up 60% in the last five years, but the momentum has slowed in the last year. At the time of publication, the Dow is 70 points below where it was one year ago. Stocks have recovered from the steep losses and volatility at the end of the summer, but they’re struggling to break out of the current range.

    The reason? Uncertainty, according to veteran CEO Bob Nardelli, who says it’s really hard to understand what the underpinning is for the Dow at 18,000.

    “We’ve got this fluctuation day-to-day, so there’s no predictability and no consistency in what’s happening out there, so I’d be careful on getting overweight in equities right now,” he said.

    Where to put money safely?

    So where should investors look for reliable investment options while the markets await clear direction from the Federal Reserve?

    Sectors worth a look and worth avoiding

    “I certainly would look at health care. I’d look at technology. Certainly the auto industry has served us well,” he said. “I think you have to be very careful and more of a rifle shot on where you’re going to put your money.”

    More from Yahoo Finance

     

  • Adele's new album may break 'impossible' sales record

    Deirdre Hughes at Yahoo Finance 1 yr ago

    For Adele fans, it’s been a torturous four-year wait for new music. But the wait is finally over. The British sensation’s latest album, “25,” releases online and in stores Friday, November 20th. If you’re wondering who still buys physical CDs, you might be surprised to learn that the balance between physical and digital music sales, while shifting, still heavily favors CDs.

    Even in that context, Columbia Records will ship 3.6 million physical copies of “25,” according to Billboard. That is a staggering number by current industry standards. It will be the most CDs shipped for a new release since the 4.2 million copies of *NSYNC’s “No Strings Attached” in 2000. To put that in some perspective, iTunes didn’t even exist in 2000. (It was released on January 9, 2001.)

    If “25” lives up to the hype, it could break first-week sales records. That’s a feat many industry watchers thought would never happen again, thanks to a precipitous decline in music sales since digital began taking over.

    Total album sales, including CD, cassettes, vinyl and digital, were down 11% in 2014 compared to 2013, according to Nielsen.

    So why, after all these years, is this album the one drawing so much hype?

  • The surprisingly simple reason Blue Apron reached $2B valuation so fast

    Deirdre Hughes at Yahoo Finance 1 yr ago

    You can’t go online, watch TV, open your mail, or walk down the street without seeing an ad for a food delivery service these days. From Plated to HelloFresh and Blue Apron, there’s apparently an endless appetite for the services.

    Two of the cofounders of Blue Apron sat down with Yahoo Finance editor-in-chief Andy Serwer to reveal how they managed to expand across the country in a matter of just a few years.

    The company, headquartered in New York, was founded in 2012 and has already reached a valuation of $2 billion, based on the latest funding round in June.

    The company has 3,000 employees and delivers more than 5 million meals a month across the United States.

    How does it work?

    There are two plan options: the 2-person plan, which costs $9.99 per person, per meal, and a family plan, which costs $8.74 per serving per meal or $69.92 per 8-serving delivery. There’s no membership fee and no commitment.

    Is an IPO in the offing?

  • Charles Koch: We’re creating welfare for the wealthy

    Deirdre Hughes at Yahoo Finance 1 yr ago

    Charles Koch, the billionaire CEO of Koch Industries, says welfare is making people’s lives worse, but he’s not talking about welfare for low-income parents or the elderly. He’s aiming at a much bigger target. He’s talking about welfare for some of the most valuable companies in the world in the form of government handouts such as tax breaks and subsidies.

    Before you go on a rant about how Koch’s own company—the second largest private company in the United States behind Cargill—benefits from the very same corporate benefits, he readily acknowledges that fact.

    In his new book, Good Profit: How Creating Value for Others Built One of the World’s Most Successful Companies, Koch writes:

    In an effort to change that, Koch is advocating for CEOs to reject the tax breaks and to push for changes in the laws that have netted America’s largest corporations hundreds of billions of dollars. It may seem like a fool’s errand to try to convince a CEO of a massive multinational corporation who must answer to a board and shareholders to forego anything that boosts their company’s bottom line.

  • Google sends kids on virtual field trips with Cardboard

    Deirdre Hughes at Yahoo Finance 1 yr ago

    Google (GOOG) Cardboard might not look like much. In fact, it looks like something elementary school kids might build for a school project or a science fair, not something they could use to travel the world. But that’s what they’re doing in a new program called “Expeditions.” It’s a Google Cardboard kit that teachers use in the classroom to take students on virtual adventures to far-flung destinations all over the world for a fraction of what the same trip would cost to see in person, or even on a high-end competitor product like the Oculus Rift (FB).

     

    That’s one of several new advancements in Cardboard that Google announced at this year’s I/O developers conference. Since the product launched at last year’s conference, it has taken off, with more than 1 million Cardboards now in circulation.

    So far, more than 100 schools are participating the program.

    YouTube, which is owned by Google, will support Cardboard and Jump videos as well.

    More from Yahoo Finance

  • Google takes on Apple with new Photos app: Yahoo Finance Exclusive

    Deirdre Hughes at Yahoo Finance 1 yr ago

    Google (GOOG) is launching a new stand-alone photos app like Apple's (AAPL) photos app and Yahoo's (YHOO) Flickr. The new Google app will be totally separate from the existing photos options within Google+. Yahoo Finance Editor-in-Chief Andy Serwer had an exclusive demo ahead of the unveiling at the Google I/O developers conference in San Francisco this week.

    Related: The 7 New Flickr Features That I'm Not Allowed to Review

    The app will work across Android, iOS and the web. It's the latest salvo in the war for dominance of your phone between Google and Apple.

    More from Yahoo Finance

  • Obama's trade deal won't help the economy much: former White House economist

    Deirdre Hughes at Yahoo Finance 1 yr ago

    President Obama this week is going to the West Coast to pitch a controversial free trade pact with 12 nations including Japan, Australia and Vietnam. With the Trans Pacific Partnership, the President finds himself aligned with Republicans and divided against many members of his own party who vehemently oppose the trade deal, based on concerns that it will end up costing American jobs, rather than providing a lift to the middle class by boosting U.S. exports, as President Obama asserts.

    In his radio address last week, the President explained why he believes the new trade deals are not just important for the U.S. economy, but for U.S. values as well. “They’re vital to middle class economics – the idea that this country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules.”

    More from Yahoo Finance

  • 'All bets are off' for the market until these 3 sectors rally: Strategist

    Deirdre Hughes at Yahoo Finance 2 yrs ago

    Stocks tanked Wedneday morning, with the Dow (^DJI) opening down 350 points. The Nasdaq (^IXIC) and S&P 500 (^GSPC) also plunged out of the gate. The selling was spurred by renewed concerns about Europe and reports of another case of Ebola in the United States.

    Yahoo Finance Editor-in-Chief Aaron Task spoke with David Nelson, Chief Strategist at Belpointe Asset Management about what it’s going to take to reverse the downtrend.

    Nelson says that in order to have confidence that we’ve seen the bottom in the market, he needs to see a shift in leadership.

    So which sectors will revive the bull market?

    “We need to see tech, financials and industrials lead the way out of this," he says. "Until that happens, then really, all bets are off.”

    Early indications Wendesday suggest others are following a simliar script.

  • Rep. Tim Ryan on Ebola: U.S. cut funding for CDC, NIH

    Deirdre Hughes at Yahoo Finance 2 yrs ago

    A second healthcare worker in Texas has tested positive for Ebola, officials said Wednesday. The head of the Centers for Disease Control late yesterday admitted the CDC "could have sent a more robust hospital infection control team and been more hands on with the hospital from day one about how this should be managed.”

    Yahoo Finance’s Bianna Golodryga spoke with Congressman Tim Ryan, Democrat of Ohio and a member of the powerful House Appropriations and Budget Committees, about the Ebola outbreak and the U.S. response. Congressman Ryan says the United States has been "disinvesting" in critical areas, including healthcare and emergency preparedness for the last decade.

    “We’ve been disinvesting in the NIH in the last ten years and the CDC for the last ten years. CDC’s been cut by $500 million in the last few years. NIH has been cut by $400 million in the last few years. And CDC’s money for preparedness is down $1 billion from 2003. So, now all of a sudden we have an issue. You know? We’ve had bridges collapse; we’re sicker than we used to be.”

    For Congressman Ryan, that balance could be example for the federal government to follow.