|Day's Range||7.94 - 9.45|
Yahoo Finance's Brian Sozzi says that Fitbit's "newer watches are not selling and they have not diversified from wearables," causing a major issue for the company, especially after Apple revealed its latest version of the Apple Watch.
Incoming European Central Bank President Christine Lagarde says "the threat against trade at the moment is the biggest hurdle for the global economy."
On Friday, India’s Finance Minister announced tax reforms to reignite the country's economy. Its corporate tax rate fell by 8 percentage points to 22%.
(Bloomberg) -- Customers of Square Inc., the Silicon Valley payments behemoth, might assume that the cash they send to friends on the platform is housed in a glassy building in Silicon Valley, tended to by hoodie-clad tech workers. Actually, that money is more likely to be sitting in a 117-year-old community bank in Iowa.Partnerships between high-flying tech companies and traditional banks, many of them tiny by comparison, are a key force behind the financial technology boom. Because virtually no tech companies have the license required to perform banking services, many of them partner with existing banks to offer a suite of services including checking accounts, credit cards and the back-end and regulatory work the tech companies aren’t equipped—or allowed—to handle.Now, driven by the tech industry’s thirst to jump into finance, a new crop of businesses are looking to broker the connections between tech and banks. One such business is Cambr, a little-known division of an investment company called StoneCastle, which counts Square and other fintechs as customers. StoneCastle works with more than 800 small banks, spread across the country, ready to take and hold deposits from Silicon Valley startups like Square.“Airbnb, one would argue they are one of the largest hotel chains that doesn't own a room,” said Josh Siegel, chief executive of StoneCastle Partners LLC. “Our network works in a similar way. We have an account at the bank, it's the room we rent, and we can rent it out to whoever we want.”Cambr’s service launched last year as a partnership between StoneCastle, which provides the bank connections, and digital banking platform Q2 Holdings Inc., which works on the software and programming. Square’s Cash App was one of Cambr’s first customers, Siegel said, and it has since added startups like Acorns Grow Inc., MoneyLion Inc., Qapital Inc. and robo-adviser Betterment LLC, in a recently announced deal.What Cambr aims to offer tech companies is a ready-made strategy to accept deposits that they wouldn’t otherwise have the license to handle. Here’s how it works: A tech company or startup might give Cambr as much as $100 billion of customers’ cash, and could then ask the service to spread the money around to potentially hundreds of different financial institutions. A result of spreading out the deposits is that more of the fintech’s cash is insured under the Federal Deposit Insurance Corp.’s $250,000-per-account guarantee, offering more coverage than if the money were deposited at a single institution.A Salve for Digital DisruptionThe partnership model, which has rapidly become the go-to for financial technology companies, does pose some risks for banks, particularly if fast-moving startups draw the ire of regulators, as has happened before. “The banks are the supervised entities so the buck stops with them,” said Brian Korn, partner and head of fintech practice at Manatt, Phelps & Phillips. “The regulators are waiting for situations where there’s a breakdown.”But many community banks have embraced such partnerships, seeing them as a salve in times of digital disruption. More deposits can allow small banks to grow and make more local loans. In Cedar Falls, Iowa, the 117-year-old Lincoln Savings Bank, which works with Cambr, has boosted its revenue by partnering with fintechs, said Mike McCrary, who runs e-commerce and emerging technology for the bank. McCrary said that when Lincoln Savings Bank considered how it could best position itself for the next 10 years, fintech partnerships were an obvious answer. “In order for us to be relevant years from now, there had to be something digital,” he said. “Now we’re putting a lot of resources into this area of our business,” including, he said, building out a new team dedicated to working with tech companies. While the partnerships have injected cash into many small banks, some industry watchers have wondered if those banks could be left in a lurch if fintechs eventually got their own banking charters. If they did, community banks could find themselves as direct competitors to tech companies, without the same digital capabilities. But so far tech companies have made scant progress toward winning banking charters, particularly as government concern over digital financial services has grown. Some members of the U.S. Federal Reserve have voiced concern over fintech’s risk management capabilities. And Facebook Inc.’s foray into cryptocurrency has drawn ire from lawmakers.One option for tech companies has been to apply for an Industrial Loan Charter, which would effectively grant them license to provide financial services. Square first applied for the charter in the fall of 2017, but its request shows no signs of being approved. Social Finance Inc. also applied for an ILC, but withdrew its application altogether.“It’s not easy to become a bank here, and we haven’t seen much traction in general with the ILC,” Matt Burton, partner at venture capital firm QED Investors, said. “What we have seen is continued demand for non-banks to offer banking solutions.”Picking PartnersPartnering with multiple small banks is just one option for fintechs. Some, like Apple Inc. which developed a credit card with Goldman Sachs Group Inc., have teamed up with one big bank instead. But there are advantages to Cambr’s many-bank strategy. Some tech companies favor “the network approach over the big bank because they can negotiate better rates because both parties are getting something they want,'' said Lindsay Davis, a senior analyst at CB Insights. Smaller banks are also more likely to play ball because they aren’t developing competing services.“For the big banks, they are optimizing for customer acquisition and cross-selling services,” Davis said. “So a tech firm getting into financial services might be cannibalizing an existing business.” Joe Yeres, Cambr’s vice president of business development, is partly responsible for brokering the connections with community institutions, and travels a few times a month to places like Waterloo, Iowa, and Kansas City, Mo., where some of the banks it works with are located. The trips were eye-opening, Yeres said.“I was born and raised in New York metro, so the whole thing is a little funny to me,” Yeres said. “I was done with one of the leads of the banking team, and we went out for drinks after work one day, and walking around Waterloo it was like this guy was the mayor, everyone knew him. It was like, ‘Wow, this is how this part of the world works.’”Eventually, Cambr has its sights set on a bigger prize: It wants to handle deposits from the tech giants, not just the startups. Many industry watchers believe large tech companies will eventually move to offer more financial services, as Apple already has with the Apple Card and Amazon.com Inc. has with small business lending. But Siegel realizes that Cambr, the little-known product of the relatively little-known StoneCastle and Q2, faces some hurdles. “Do they want to take a risk on a younger platform?” he asks, and in doing so, “upset big finance, which they’ll still have to work with on some things?”Still, Siegel is pitching the titans of tech, as they continue to march deeper into the world of finance. He adds: “We've probably been out and visited with almost all of them.”(Updates with context on tech companies in the penultimate paragraph. An earlier version of this story corrected the location of Lincoln Savings Bank headquarters. )To contact the author of this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.com, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alphabet Inc's Google said on Monday it is rolling out Google Play Pass, a subscription service that gives Android users access to more than 350 apps and games without ads and in-app purchases. Priced at $4.99 per month, the service is similar to Apple Inc's Apple Arcade, the iPhone maker's gaming subscription service for mobile devices and desktop computers. Google's Play Pass will be available on Android devices in the United States this week and will be rolled out to additional countries soon, the company said in a blog post.
Apple Inc boosted the S&P 500 and the Nasdaq on Monday, even as gains were limited by mixed economic cues in the face of a prolonged U.S.-China trade war. Apple Inc rose 0.5% after U.S. trade regulators approved 10 out of 15 requests for tariff exemptions by the iPhone maker.
Apple’s (AAPL) iPhone 11 preorders have been encouraging. Furthermore, demand for the iPhone 11, Pro, and Pro Max are exceeding supply chain expectations.
Netflix shares continue to slide amid worries that rising competition from Amazon, Apple, and Disney will erode its growth rates and market share.
Apple Inc. said Monday that it will continue to make its new Mac Pro computer in Austin, Texas, reversing earlier reported plans to move production overseas, after the technology giant said it received a federal product exclusion from tariffs for certain "necessary" components. The Mac Pro has been made in Austin since 2013, but The Wall Street Journal reported in June that Apple was shifting production to China. "We thank the [Trump] administration for their support enabling this opportunity," said Apple Chief Executive Tim Cook. Apple said the value of the American-made components in the new Mac Pro is 2.5 times greater than the previous generation. Apple's stock was up 0.5% in midday trading. It has rallied 39% year to date, while the Dow Jones Industrial Average has gained 16%.
U.S. trade regulators on Friday approved 10 out of 15 requests for tariff exemptions filed by Apple amid a broader reprieve on levies on computer parts. Apple's requests for tariff exemptions were for components such as partially completed circuit boards. "The new Mac Pro will include components designed, developed and manufactured by more than a dozen American companies for distribution to U.S. customers," Apple said in a statement.
(Bloomberg) -- Apple Inc. said the next version of its high-end Mac Pro desktop computer will be assembled in Texas after the company received tariff waivers on key components.The new model will be produced in the same factory in Austin operated by Flex Ltd. that has produced the previous Mac Pro since 2013, Apple said in a statement Monday. Manufacturing of the new model was “made possible” after the U.S. government approved on Friday Apple’s request for a waiver on 25% tariffs on 10 key components imported from China. The company was granted exclusions on several parts, including processors, power components and the computer’s casing.While some key components will be made in China and exported to the U.S. for final assembly, Cupertino, California-based Apple said the new version includes 2.5 times the value of American-made parts as the previous model. The new Pro will include components made by more than 12 U.S. companies in states such as New York, Vermont and Arizona for distribution to U.S. customers, Apple said. The company didn’t specify whether this includes Mac Pros being sold outside the U.S.In a statement, Apple Chief Executive Officer Tim Cook thanked “the administration for their support enabling this opportunity.”Texas Governor Greg Abbott said his state’s “economy is thriving as the tech and manufacturing sectors continue to expand. I am grateful for Apple’s commitment to creating jobs in Texas.”Cook has met frequently with U.S. government officials, including President Donald Trump, in an effort to ease the impact of the U.S.-China trade war on Apple’s business. Over the summer there were reports that Apple would move production of the Mac Pro to China to escape a widening list of tariffs on Chinese-made goods.Trump had previously signaled that relief from tariffs on the Mac Pro would be rejected, saying in a July 26 tweet that “Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!” However, the president later told reporters “we’ll work it out.”While Apple did receive tariff relief for the 10 Mac Pro components, it has five other requests pending and hasn’t been spared from all duties. Products such as the Apple Watch, AirPods and iMac computers were hit by 15% tariffs earlier this month, while the iPhone, iPad and other major Apple products are set to be impacted later in December. Apple has maintained that its products are primarily designed in the U.S. and has grown its local investment since the trade war began brewing.The new Mac Pro’s production will begin soon, Apple said, without specifying a launch timeline. The revamped model was announced in June at the company’s annual conference for developers and starts at $6,000. Compared with the previous version, the new model is far more customizable and integrates with a new high-resolution external monitor.\--With assistance from Mark Niquette.To contact the reporter on this story: Mark Gurman in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Molly Schuetz, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Netflix (NFLX) has been the worst-performing FAANG stock, primarily due to slowing growth amid rising competition in the streaming space.
Apple said on Monday that the U.S.-based manufacturing effort was made possible through a 'federal product exclusion' of certain necessary components.
Apple Inc. said Monday its new Apple TV-plus service will include an Oprah Winfrey Book Club, that will premiere on Nov. 1. Winfrey, the billionaire talk-show host, actress and CEO, will partner with the iPhone maker to "build a vibrant, global book club," Apple said in a statement. Her first book selection will be "The Water Dancer," by Ta-Nehisi Coates. The premiere will include an interview with the author. A new episode will be available every two months. Apple shares were up 0.3% in premarket trade and have gained 38% in 2019, while the S&P 500 has gained 19%.
Apple® and Oprah Winfrey today announced Oprah’s Book Club will connect a community of readers worldwide to stories that truly matter by today’s most thought-provoking authors. Winfrey, the esteemed producer, actress, talk show host, philanthropist and CEO of OWN, will partner with Apple to build a vibrant, global book club that has the power to both transport and transform people — turning every book into an opportunity for self-discovery, and bringing the world together through reading. Winfrey’s first book selection is “The Water Dancer” by Ta-Nehisi Coates, available for pre-order now on Apple Books (https://apple.co/OprahsBookClub) in both ebook and audiobook formats, and debuting tomorrow.1 Winfrey will interview Coates for the first installment of her new exclusive Apple TV+ series, “Oprah’s Book Club,” premiering November 1.