|Day's Range||226.15 - 226.15|
The backlash Google faces in a health deal exposes the lack of knowledge consumers have about the myriad laws that govern their health data, and suspicions about Big Tech.
Google introduced Cache, a new program for personal banking, which will be run by Citigroup and Stanford Federal Credit Union. Yahoo Finance’s Adam Shapiro, Julie Hyman, Brian Cheung and Akiko Fujita discuss on On The Move.
Google will soon be offering checking accounts direct to consumers. Yahoo Finance’s Brian Sozzi, Alexis Christoforous and Ethan Wolff-Mann discuss on The First Trade.
Disney+ will hit its 50 million subscriber goal quickly, says Ross Gerber of Gerber Kawasaki, who considers Disney shares a strong buy. The streaming service signed up more than 10 million users on its debut Tuesday.
Google is taking a deeper dive into finance. A source says the search engine company will offer checking accounts to consumers sometime next year. The Alphabet unit will partner with Citigroup and a small credit union at Stanford University to make that happen. The news comes one day after Facebook launched Facebook Pay, a service that allows users across its platforms to make payments without exiting the app. Google already offers a digital wallet called Google Pay. They're just the latest moves by Silicon Valley heavyweights to move into a financial industry that is awash with rich user data. Reuters banking reporter Imani Moise: SOUNDBITE: REUTERS BANKING REPORTER IMANI MOISE (ENGLISH) SAYING: "I think what they're really after is just insights into where consumers are really spending their money. Because you can survey consumers, you could see what they like on social media, but at the end of the day, what matters most to advertising clients is how they're spending their money." Apple launched a credit card last summer in conjunction with Goldman Sachs. Facebook plans to launch a digital coin called "Libra." But Facebook's crypotocurrency plans has raised concerns from global regulators, who are worried about how the tech titans will use their digital influence in the arenas of business and economic infrastructure. Google told the Wall Street Journal it will not sell the financial data of its checking account users.
Lawmakers pressed top U.S. antitrust enforcers on their probes of tech giants Alphabet's Google , Facebook , Amazon and Apple on Wednesday, with the chair of a House subcommittee expressing frustration over the companies' continued acquisitions. In a hearing of the House Judiciary Committee's antitrust subcommittee, Makan Delrahim, the head of the Justice Department's antitrust division, said his investigative staff was focused on understanding how personalized advertising transactions work.
(Bloomberg) -- Peloton Interactive Inc., the unprofitable fitness company whose stock has been skidding, plans to introduce two new pieces of workout equipment next year in a further expansion beyond cycling.The company is working on a new treadmill that will cost less than the current $4,000 model, as well as a rowing machine, according to people familiar with their development. Peloton has also explored apps for Amazon.com Inc.’s Fire TV and the Apple Watch to complement its smartphone software, though the status of those projects is unclear, said one of the people, who asked not to be identified because they weren’t authorized to discuss the information publicly.The new pieces of hardware will likely be the first introductions for the company in at least two years, when the original treadmill debuted. But people familiar with the plans said the release timing could change. Peloton’s stock jumped as much as 9% in intraday trading on the news.Jessica Kleiman, a spokeswoman for Peloton, declined to comment on products in development. “Our R&D team is always working on ideas,” she wrote in an email.In the almost two months since Peloton went public, investors have called for the company to reevaluate its expensive growth ambitions and focus on turning a profit, much like with other technology companies that have gone public this year. Peloton’s initial public offering fell flat, and the stock is down 15% since then. John Foley, the chief executive officer, said on a conference call with analysts last week that management is convinced now is the time to spend on expansion. “If we pull back on growth, we could be profitable tomorrow, but that is not what the board and the leadership at Peloton believe we should do,” he said.Foley helped start Peloton with a Kickstarter campaign in 2013, pitching live and on-demand cycling classes streamed to the home. The main hardware product is a $2,245 stationary bike affixed to an iPad-like device. It has recently expanded to Canada and Germany and is also building fitness studios in New York and London.Peloton now offers a variety of classes, including boot camp-style workouts, meditation and yoga, through apps that don’t require pricey equipment. More than 500,000 people take Peloton classes, which require a membership costing at least $19 a month. The company describes itself as the “largest interactive fitness platform” in the world.Foley has fashioned Peloton as a tech company, which has helped boost its market value to $7 billion today. Executives emphasize user engagement as a key business metric. The company said last week the average user was nearly a dozen workouts on Peloton each month, up from nine in the same period last year. Executives see the addition of new kinds of workouts as a way to increase engagement. In 2018, Peloton introduced its first treadmill at the Consumer Electronics Show in Las Vegas. The bulkiness of the equipment and $4,000 price tag have made it a niche product, though Foley has said he’s happy with sales of the treadmill.To increase sales, Peloton has looked for various ways to make its products more affordable. It offers monthly installment plans on equipment purchases through a startup called Affirm and acquired an engineering firm this year that previously designed devices for Google and Facebook Inc. Foley said in an interview last week that the acquisition would give Peloton cost advantages and potentially speed up production.Foley aspires to create the Apple Inc. of fitness and has taken many cues from the world’s most valuable public company. One of those is product secrecy. During the IPO roadshow, Foley would only answer questions about new products by saying Peloton could have a “better, best” strategy, suggesting it may sell multiple models of bikes or treadmills at different prices. In an interview with Bloomberg TV on the day of the IPO, Foley declined to answer questions about new products. When asked specifically about the potential for a rowing machine, Foley responded with a smirk: “I think rowing is a fantastic workout.”(Updates with share move in the third paragraph.)\--With assistance from Jason Kelly.To contact the reporters on this story: Julie Verhage in New York at firstname.lastname@example.org;Mark Gurman in San Francisco at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- U.S. antitrust enforcers should stop Google’s proposed acquisition of Fitbit Inc. because the deal will further consolidate the search giant’s control over consumer data, a coalition of privacy and consumer advocates said.The $2.1 billion takeover would allow Google to entrench its monopoly power in the digital marketplace, the groups said Wednesday in a letter to the Federal Trade Commission.“Through its vast portfolio of internet services, Google knows more about us than any other company, and it should not be allowed to add yet another way to track our every move,” they said.Alphabet Inc.’s Google is a leader in digital data, and Fitbit would give it a new stream of valuable health and activity data from Fitbit’s more than 28 million users. The purchase will mean Apple Inc. and Google control more than half of the global smartwatch market. Apple had 46% of this growing sector at the end of the second quarter, while Fitbit had 10%, according to research firm Strategy Analytics.A Google spokesman didn’t immediately respond to an email seeking comment about the letter to the FTC, which was signed by Open Markets Institute, the Center for Digital Democracy, Consumer Federation of America, and the Electronic Privacy Information Center, among others.A spokeswoman for the FTC didn’t immediately respond to a phone call and an email seeking comment.The deal is likely to face a stringent antitrust review. Google and other big internet companies are already under scrutiny at both the FTC and the Justice Department. A group of state attorneys general is also investigating whether Google’s business practices harm competition. Both Republicans and Democrats also have been strongly critical of practices by big technology and internet companies.Google is separately under scrutiny by the U.S. Department of Health and Human Services over its access to personal health data as part of a project to build a new internal search tool for the Ascension hospital network.\--With assistance from Ben Brody.To contact the reporter on this story: David McLaughlin in Washington at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Google will offer personal checking accounts beginning next year via a partnership with Citigroup Inc. The Mountain View, California-based tech giant has dubbed the project "Cache" and confirmed to The Wall Street Journal that it underscores a shift toward banking. “Our approach is going to be to partner deeply with banks and the financial system,” said Caesar Sengupta, general manager and vice-president of payments at Google (NASDAQ: GOOG). “It may be the slightly longer path, but it’s more sustainable." Citi (NYSE: C) confirmed the partnership.
(Bloomberg) -- Google’s top health and cloud executives said the company isn’t misusing health data from one of the biggest U.S. health-care providers, pushing back against news reports that have triggered criticism from lawmakers and prompted a federal inquiry.Google employees only have access to patient information in order to build a new internal search tool for the Ascension hospital network, said David Feinberg, head of Google Health. No patient data is being used for Google’s artificial intelligence research, he added.The Alphabet Inc. company’s contract is governed by U.S. health privacy law that permits it access to patient records solely for the task of organizing Ascension’s various health records systems and building a tool to make them easier to search, Feinberg said.“That’s all we’re allowed to do and that’s all we are doing,” he said.Google’s deal with Ascension has been under scrutiny since the Wall Street Journal reported on Monday the company was collecting identifiable data on millions of Ascension patients and using it to build new products. On Tuesday, the paper reported that the U.S. Department of Health and Human Services’ civil rights office was starting an inquiry into the situation.HHS’s Office of Civil Rights “would like to learn more information about this mass collection of individuals’ medical records with respect to the implications for patient privacy under HIPAA,” said Roger Severino, director of the office, in a statement Wednesday. HIPAA is the Health Insurance Portability and Accountability Act, the U.S. law that governs confidentiality and information sharing in health care and insurance, among other rules.Thomas Kurian, chief executive officer of Google Cloud, declined to comment on the inquiry.Google Gets Access to Health Data With Ascension PartnershipAscension’s health data is being stored on Google Cloud servers but sequestered so only Ascension employees can access it, according to Google.“All data is logically siloed to Ascension and housed within a virtual private space encrypted with dedicated keys,” Kurian said. “Google does not sell, share or otherwise combine data from Ascension with any other data.”Senator Richard Blumenthal, a Democrat from Connecticut, said Google’s activity was a “blatant disregard for privacy” and “beyond shameful.” News articles and social media posts have questioned why Google needs to collect patient information and speculated that the search giant could eventually use the data for advertising. That isn’t true, Kurian and Feinberg said in a joint interview.When Google does work with other companies on artificial intelligence research, it always strips out personally identifying information, Kurian said.“We never actually have Google employees understand individual patients’ data when it goes into the model. We have other technologies that de-identify it,” he said.Feinberg said his team is tapping Google’s expertise in search technology to build a tool that can scan through Ascension’s multiple electronic health record systems and make it easy for doctors and nurses to find the exact data they need, when they need it. The project is still in its infancy, but could eventually become a standalone product that Google could sell to other health-care providers and entities, Feinberg said.“If we can help solve the information overload and the pressures on doctors and nurses then there would be a huge benefit to a lot of people in those types of tools,” he said. “To me, that is actually really, really exciting.”\--With assistance from Mark Bergen.To contact the reporter on this story: Gerrit De Vynck in New York at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Google is taking its deepest dive yet into the financial lives of its users with plans to roll out a checking-account service.Citigroup Inc. and a California credit union are the tech giant’s initial partners for the venture, which will let users access their bank accounts through the Google Pay app beginning next year, according to people familiar with the matter. Other banks could join up later, the people said, asking not to be identified because the plans haven’t been announced.“We’re exploring how we can partner with banks and credit unions in the U.S. to offer smart checking accounts through Google Pay, helping their customers benefit from useful insights and budgeting tools,” Google said in an emailed statement, adding that the accounts will carry federally guaranteed insurance.The move is the latest sign of Silicon Valley’s determination to muscle in on financial firms’ territory, looking to expand their hold on customers and accumulate data on their finances. At the same time, it shows banks are more willing to pair up with technology companies in their quest to avoid getting shut out of the relationship entirely. In the Google arrangement, the financial institutions will handle most of the compliance requirements.Google has spent years building out its payments capabilities, offering consumers the ability to send money to friends and check out both online and in stores through Google Pay. With the checking accounts, consumers will be able to receive their paychecks and transact solely inside the Google ecosystem.“We’re going to see more of this, but it’s not the death of banking,” Bryce VanDiver, a partner with Capco who advises banks and payment companies, said in a telephone interview. “Compliance is still being manged by Citi. If you look at banks’ core competencies, compliance being one of those, they’re really good at that.”The Wall Street Journal reported Google’s plan earlier Wednesday.For Google, the trove of data associated with checking accounts and financial products is another step in its push to collect information on all aspects of consumers’ lives. The firm has a wealth of information on consumers’ search behavior from its flagship site as well as partnerships with the largest U.S. health-care systems to analyze consumers’ health data. The move comes at a time when Google and other large tech companies are under increased scrutiny in D.C. with antitrust probes around competition law.“This is probably more about Google Pay and how they plan to position that going forward to access all financial products, not just credit cards,” VanDiver said.One of the people said Google partnered with Citigroup in part because the lender has spent the last year building out its digital banking arm, an effort that’s helped the bank gather more than $4 billion in deposits this year.“This agreement has the potential to expand the reach and breadth of our customer base while complementing our continued investments in digital,” Citigroup said in a statement. The partnership is a bit of a shift for Citigroup, which has been relying on marketing its digital bank accounts to existing customers in the firm’s sprawling cards business. The New York-based company said earlier this month it would offer special perks for checking accounts to customers of its co-brand credit card with American Airlines Group Inc.“This year we’ve increased the deposits we’ve raised digitally more than fourfold,” Anand Selva, who leads Citigroup’s consumer bank in the U.S., said at an investor conference this month. “As we continue to test and learn and enhance our digital capabilities and experiences, the digital deposit momentum has accelerated through the year.”For the finance industry, the worry is that tech giants could one day replicate the success of Alipay and WeChat Pay in China, where money flows through digital systems without the need for banks.To fight off the threat, banks are striking deals to keep a firm hold on their customers. Apple Inc. paired with Goldman Sachs Group Inc. this year to offer a credit card that extended $10 billion in credit lines as of Sept. 30. Uber Technologies Inc. announced last month that it would offer a bank account to drivers on its platform through a partnership with Green Dot Corp.(Updates with comments from Google, Citi starting in the third paragraph.)\--With assistance from Julie Verhage.To contact the reporter on this story: Jenny Surane in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, James HertlingFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Guru believes easy monetary policy, lower taxes will push market into record territory Continue reading...
According to French bank Societe Generale, stock buybacks for S&P 500 companies may reach $570 billion in 2019.
Greener and leaner transportation is a top priority for most industrialized countries currently, and smart solutions such as scooters, electric vehicles and bullet trains are quickly gaining popularity
Alphabet Inc (NASDAQ: GOOGL), Yahoo, and Microsoft Corporation (NASDAQ: MSFT) have taken the lead for years as organisational tools but this might be about to change with Dayhaps calendar app that is considered as the ‘Whatsapp for calendars', the app makes it easy to create single and group calendars. The biggest advantage of Google is obvious: it is integrated with the kingdom of other Google products, but also to-do lists and booking tools. Back in 2015, Microsoft acquired Sunrise, a free calendar app that was developed by former Foursquare designers only a few years before it was acquired.
When businesses such as Google Maps, Waymo and the Google Cloud Platform get valued on their own, the valuation given to Google's main profit engines looks fairly cheap.