Marissa Mayer Is Close To Poaching A Top Amazon Executive (YHOO, AMZN) | ||
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Marissa Mayer is close to hiring Amazon's top ad sales executive, Lisa Utzschneider, according to Kara Swisher at Re/code. Swisher says it's unclear what role Utzschneider would be hired for. She may be hired as a head of sales, or as a COO. Yahoo doesn't never replaced Henrique De Castro, who was COO until Mayer forced him out of the company. Either way, Utzschneider would be an executive with sales experience to help get Yahoo pointed in the right direction. Yahoo's display ad business, which is supposed to be a core strength, is struggling. Last quarter, the display ad business generated $396 million in revenue, which was down 5% on a year-over-year basis. Since Mayer took over as CEO, Yahoo has lacked a great advertising executive who could meet with ad agencies and smooth over those relationships. Yahoo just hired Kevin Gentzel from the Washington Post to be head of sales. Industry sources we spoke with were positive on Gentzel, describing him as the sort of sales guy Yahoo needs. It's possible Utzschneider will be Gentzel's boss. She has been with Amazon for six years. Previously she was at Microsoft. SEE ALSO: Marissa Mayer Has A Perfect, Point-By-Point Response To Her Haters Join the conversation about this story »  | ||
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Here's What China's Richest Man Says About The Hong Kong Protests | ||
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Jack Ma, the CEO of e-commerce giant Alibaba and China's richest man, appears to have a lot of sympathy for the student-led protests disrupting Hong Kong over that last month. “Hong Kong part of me (thinks) it’s not about China and Hong Kong relationship. It’s about the young people who don’t have hope," Ma told a technology conference. "All the big guys take ... the good things and the young people feel hopeless. I understand that but they should not push too much. Both sides should listen.” The financial hub and former British colony of Hong Kong has been rocked by a student-led civil disobedience movement called "Occupy Central" that demands full democracy, sparking clashes with police and other groups. Hong Kong returned from British to Chinese rule in 1997 under a "one country, two systems" formula that allows it wide-ranging autonomy and freedoms and specifies universal suffrage for choosing its leader as an ultimate goal.
But Communist Party leaders in Beijing have insisted on screening candidates for the job first, prompting the popular, and in the most part courteous, dissent. The student-led protesters now appear to be settling in indefinitely, even though the government is powerless to change the financial hub's "Basic Law" mini-constitution and go against Beijing rule. China's Communist Party said on Tuesday it aims to prevent "external forces" intervening in Hong Kong and Macau, the official Xinhua news agency reported via its microblog. The ruling party added it supported the chief executive of Hong Kong and his administration. Neighbouring Macau, a former Portuguese colony, has seen similar protests. (h/t @BryFitz) Join the conversation about this story »  | ||
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Twitter Has Quietly Stopped Supporting Google Glass (TWTR, GOOG) | ||
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Twitter has quietly removed its official Google Glass app, and has announced that it is ending support for Google's experimental device, 9t05Mac reports. According to the website, there is now no way for new Google Glass users to tweet photos taken using their device because the Twitter app has completely disappeared. Reddit user pete716, one of the "Glass explorers" given early access to the device, posted about the removal of the official Twitter app from Google Glass: "According to Glass support Twitter is no longer developing their Glass app. This was one of my favorite and most used apps on Glass. If you remove Twitter from your Glass it disappears from Glassware and there is no option to reinstall it." It's not clear why Twitter has decided not to support the product anymore, but it does mean that until a third-party developer comes along and makes a new Twitter app for Google Glass, these devices users are stuck. SEE ALSO: Man Treated For Google Glass Addiction After Wearing Headset 18 Hours A Day Join the conversation about this story »  | ||
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YouTube Star Michelle Phan Was Once Denied A Job At A Makeup Counter — Now Her Makeup Startup Is Worth $84 Million | ||
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Michelle Phan isn't just your run-of-the-mill YouTube celebrity. She's creating an empire. Michelle, who films makeup and hair tutorials for the beginner stylist to the advanced, is taking over the world, one video view at a time. Currently she's up to a billion views on her channel — and there's no telling when the momentum will slow down. In an interview with Re/code at the Code/Mobile conference, Phan talked about her startup, a Birchbox-like competitor called "Glam Bags." Recode reports "the ferocious 27-year-old mogul had a modest start with her family — living on food stamps at one point — and now has a company with an $84 million annual sales run-rate. She has 700,000 subscribers who receive her Glam Bags — little sacks of makeup samples — for $10 a month. The makeup business is famous for its high margins." We reported on Phan earlier this month when her book — Makeup — came out, and how she got her start making YouTube videos. Phan also told Re/code about a time when Lancome wouldn't even hire her to work the counter in a department store because she had no sales experience. Eventually, Lancome came calling after seeing Phan's videos, and made her their "digital spokesperson." You can read more about Phan's start here, and her interview with Re/code here. Join the conversation about this story »  | ||
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Retailers Like Wal-Mart Have Started A War Against Apple That They Have No Chance Of Winning (AAPL) | ||
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Apple Pay, the new mobile payments system from Apple, is barely a week old, but it is already being attacked by the merchants it is supposed to be making things easier for. The war over mobile payments may be in its early stages, but it is one big retailers are poised to lose by not playing along with Apple. On Saturday, the pharmacies Rite Aid and CVS disabled Apple Pay from their stores, even though they have the compatible equipment that was working when Apple Pay launched last week. They also blocked Google Wallet, a similar system for Android phones that Google launched in 2012. Neither Rite Aid nor CVS will specifically say why it decided to disable Apple Pay, but it seems to be because each is part of the Merchant Customer Exchange, a consortium of the biggest retailers in the US. MCX happens to be working on its own mobile payments app, CurrentC, which is in beta testing and is expected to launch next year. But by all accounts, CurrentC is a mess and much more difficult to use than Apple Pay. For starters, it works only with your checking account, meaning you can't load your regular credit cards as you can with Apple Pay. It also requires you to scan a barcode to make payments, something proved to not be as secure as near-field communication and other encrypted technology used by Apple Pay and Google Wallet. Finally, CurrentC will allow merchants to track what you buy and store that data, something Apple Pay doesn't allow. MCX's public relations department, CEO, and COO did not respond to multiple requests for comment. CVS' statement Monday confirmed only that the retailer would not accept Apple Pay and would launch its own mobile payments system soon, presumably CurrentC. Rite Aid has not yet made a statement. But the drug stores' move and MCX's impending mobile payments app is already ruffling feathers at Apple and its credit-card partners like MasterCard. "They've taken away an option from consumers, and they haven't done anything to replace it," said James Anderson, MasterCard's senior vice president of emerging payments, in an interview with Business Insider. "You'd think they would've had something in place. But we're happy to compete with it." Apple's public take on the dispute is much more diplomatic, but the implication is clear: Early feedback of the system from customers and retailers is really good, and the retailers that are not joining or that are finding ways to block Apple Pay are going to miss out. Here's what an Apple spokesperson told Business Insider on Monday: The feedback we are getting from customers and retailers about Apple Pay is overwhelmingly positive and enthusiastic. We are working to get as many merchants as possible to support this convenient, secure, and private payment option for consumers. Many retailers have already seen the benefits and are delighting their customers at over 220,000 locations. It's a competition the MCX retailers are ultimately going to lose. As John Heggestuen of Business Insider Intelligence points out, customers are already asking for what Apple Pay provides. They want a solution that's secure, available where they shop, compatible overseas, and available on the devices they love, namely the iPhone.
Then there's the statement from Wal-Mart, one of the big leaders of MCX, on why it won't accept Apple Pay. Emphasis added: There are certainly a lot of compelling technologies being developed, which is great for the mobile-commerce industry as a whole. Ultimately, what matters is that consumers have a payment option that is widely accepted, secure, and developed with their best interests in mind. MCX member merchants already collectively serve a majority of Americans every day. MCX’s members believe merchants are in the best position to provide a mobile solution because of their deep insights into their customers’ shopping and buying experiences. Apple Pay may not be widely accepted yet, but it uses technology that is relatively easy for retailers to implement. It's also secure, arguably more secure than a credit card because your credit card number isn't actually stored on your phone. It also works only with the user's fingerprint, so unless a thief is able to get your phone and chop off your thumb, you don't have to worry. And it's simple to set up and use. There's also a strong chance that while credit-card companies are open to trying different payment platforms, they might not partner with MCX's CurrentC. According to two sources familiar with major credit-card companies and their plans for mobile payments, CurrentC might not use the same kind of secure technology that encrypts your credit-card number as Apple Pay does. So while credit-card companies may be open to trying new things, their reception might be a bit chilly toward CurrentC if it's clear that it won't be safe for customers to use. It's clear that the retailers of MCX are digging their own graves. Two of them have eliminated a viable mobile payments system without providing an alternative. The rest have chosen to ignore Apple Pay altogether. And it's all resting on CurrentC, a payments app that's more difficult to use and potentially not as secure as Apple Pay. The most likely scenario: MCX retailers will go ahead and launch CurrentC. It'll be a dud. And before long, Apple Pay, Google Wallet, and similar mobile payment methods will become the new standard.
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Here Comes Durable Goods... (DIA, SPY, QQQ, TLT, IWM) | ||
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The latest report on durable goods orders is set for release at the bottom of the hour. Expectations are for orders to rise 0.5% month-over-month, a moderation from the wild swings seen in August and July. Durable goods orders excluding transportation are also expected to rise 0.5%. In July, durable goods orders rose a record 22% on large aircraft orders, but this was followed by a huge 18% drop in August. We'll be back with the live numbers when they hit.
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What Are Traders Talking About Right Now? Russia, Oil, Earnings... (DIA, SPY, QQQ, TLT, IWM, TWTR) | ||
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Happy Tuesday! From Dave Lutz of JonesTrading, here's a quick guide to what traders are talking about this morning: Good Morning! US Futures are breaking higher, with Russell, NDX and S&P all adding 50bp early. The global rally started in Asia - Hong Kong’s Hang Seng index rose 1.2% and the Shanghai Composite jumped 2.1% as President Xi Jinping signaled a nationwide expansion of free-trade zones. While Falling Ore weighed on Miners keeping Aussie in the red, and Nikkei fell 40bp despite stronger Retail Sales Data – India added 50bp on chatter reforms coming to boost growth. This shift in global sentiment is helping Europe recover, the DAX has added 1.3%, EuroStoxx 1% as the Banks recover yesterday’s weakness – SX7E gaining 1.5%. Most EU markets are trading very light still, with volumes 30-50% below normal. Russian equities are bouncing and the Ruble rallying – helping sentiment in Europe. Keep an eye on Brazilian equities – EWZ is continuing yesterday’s rally from lows, gaining 3% - PBR marked up 2% as the street covers shorts post election. The 10YY is higher here, mirroring a weakness in German paper as the Fed starts their 2day meeting – The DXY is continuing its rally – making gains against the Euro, and getting back upside 108 to the Yen. Keep an eye on Sweden’s Krona – just took out 3Y lows against the $ as their Central Bank cuts to 0% to fight deflation. Despite the headwind from the stronger dollar – most commodities are well bid. Silver and Copper are rallying, while Brent/WTI are up 50bp despite headlines Iran saying no OPEC cut next month. Grains and Beans are popping as yields in Australia and Russia may drop because of extreme weather – this is another crowded short. Scheduled catalysts include Durable Goods Orders at 8:30, S&P CaseShiller at 9, at 10 we get Consumer Confidence and Richmond Fed, and finally at 1 we have a $29B, 2Y auction Focus remains on earnings today (TWTR off 10%, downgraded BofA, SF, Nomura, RBC) – we have AET, AMTD, CIT, CMI, DD, FCX, GLW, HOT, MMC, PCAR, PFE, and TRW pre-open and AFL, AJG, AMP, BXP, EA, FB, GILD, MAR, WDC, and X after the bell. I’ll also be watching the Oil Service Stocks, OIH never recovered with the commodity yesterday. Brazil remains interesting, as EWZ has been a straight line higher since yesterday’s down 10% opening – Despite lighter Eco data yesterday, the ITB (Builders) managed to rally above the 200dma, and close near 3M highs – With rates slightly higher, watch tailwinds in Fins – there was a massive liquidation Friday in the XLF, seemed tied to a hedge coming off in Options. Finally, Ebola headlines are fading, and the Airlines continue to rocket higher – UAL, AAL and DAL are all up double digits for October. Join the conversation about this story »  | ||
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Taylor Swift Is Named 'Ambassador' Of New York City | ||
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New York City newcomer Taylor Swift is now the urban jungle's official ambassador, making a series of videos for NYCGO helping to "explain" Manhattan and its boroughs to tourists. “I’m still learning, but I’m so enthusiastic about this city that when I love something, I’m very vocal about it,” Swift said on ABC’s “Good Morning America." Swift shares her own NYC vocabulary with words like "bodega." The new role comes along with a song off her new album "1989" called "Welcome to New York," the city's catchiest anthem since Jay-Z and Alicia Keyes partnered for "Empire State of Mind." You can watch all of Swift's videos for NYCGO here. Join the conversation about this story »  | ||
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ELON MUSK: The Wall Street Journal Is Wrong About Tesla Sales | ||
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Electric car-maker Tesla has been one of the hottest growth stories in the stock market and American industry. So, everyone was taken aback when the Wall Street Journal's Mike Ramsey and John D. Stoll reported a breath-taking plunge in sales for one of Tesla models. From the WSJ: The auto maker has long had a waiting list in the U.S. for its only car, which is currently back-ordered in its home market until December, according to a company sales representative. Tesla, however, is facing declining sales in the U.S., according to WardsAuto.com, an industry publication that tracks auto company data. Through September, Tesla sold 10,335 Model S sedans in its home market, down 26% compared with the same period in 2013. The U.S. decline has come even as the company’s U.S. production increased 10% during the same period, according to WardsAuto. Tesla doesn’t disclose sales volumes by region, but has said it expects half of its sales to be outside the U.S. by the end of 2014. With a goal of selling 35,000 cars this year, Tesla would have to sell about 17,500 models in the U.S. At its current sales pace, the auto maker will miss that target by a wide margin—and will have to double its sales pace to hit its goal. There are obviously some confusing points here. They acknowledge that the vehicles are back-ordered, which would suggest Tesla is more likely on track to meet its goal of selling 35,000 units. Indeed, this was the message CEO Elon Musk advanced in the company's Q2 earnings announcement, in which he also projected a run-rate of 100,000 units in 2015. Musk fired back on Twitter, saying point blank that the Journal "is incorrect." Some folks have noticed an issue with Musk's tweet. Specifically, Musk says September was up 65% year-over-year. Meanwhile, the Journal says down 26% "through September," which would imply its measuring year-to-date sales. Nevertheless, Musk is saying something is wrong. In July, Tesla announced it would be shutting down production of its Fremont Model S factory to retool in preparation for its new Model X. It's possible that any resulting supply disruption could mean delayed deliveries. In other words, while sales have been technically strong, the cars sold might not actually be on the owners' driveways. We'll likely get more clarity by November 5, which is when Tesla announces its Q3 financial results. SEE ALSO: WALL STREET'S BRIGHTEST MINDS REVEAL THE MOST IMPORTANT CHARTS IN THE WORLD Join the conversation about this story »  | ||
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Marissa Mayer Is Close To Poaching A Top Amazon Executive (YHOO, AMZN) | ||
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Marissa Mayer is close to hiring Amazon's top ad sales executive, Lisa Utzschneider, according to Kara Swisher at Re/code. Swisher says it's unclear what role Utzschneider would be hired for. She may be hired as a head of sales, or as a COO. Yahoo doesn't never replaced Henrique De Castro, who was COO until Mayer forced him out of the company. Either way, Utzschneider would be an executive with sales experience to help get Yahoo pointed in the right direction. Yahoo's display ad business, which is supposed to be a core strength, is struggling. Last quarter, the display ad business generated $396 million in revenue, which was down 5% on a year-over-year basis. Since Mayer took over as CEO, Yahoo has lacked a great advertising executive who could meet with ad agencies and smooth over those relationships. Yahoo just hired Kevin Gentzel from the Washington Post to be head of sales. Industry sources we spoke with were positive on Gentzel, describing him as the sort of sales guy Yahoo needs. It's possible Utzschneider will be Gentzel's boss. She has been with Amazon for six years. Previously she was at Microsoft. SEE ALSO: Marissa Mayer Has A Perfect, Point-By-Point Response To Her Haters Join the conversation about this story »  | ||
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10 Things You Need To Know Before The Opening Bell | ||
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The Russian Ruble Just Hit An Historic Low. Russia's currency crossed 54 rubles to the euro in early trading, the first time it had ever crossed that level, on the back of months of weakening against major currencies. Sweden Just Slashed Interest Rates To Zero. After months dipping from low inflation into deflation, Sweden’s Riksbank has cut its main policy rate to 0%. UBS Set Aside $2 Billion For Settlements. UBS, Switzerland's largest bank, has had to set aside 1.84 billion Swiss francs ($1.9 billion) in legal provisions to pay for possible fines and to settle regulatory investigations. Lloyds Is Laying Off Another 9,000 Staff. Britain's Lloyds Banking Group has taken another £900 million ($1.5 billion) charge to compensate customers mis-sold loan insurance, and is laying off thousands of workers to reduce costs. European Markets Opened Up. All the major stock indices in Europe are up Tuesday morning. In Asia, the Nikkei closed down 0.38% and the Hang Seng closed up 1.63%. Durable Goods Are Coming. Official numbers for durable goods orders are out at 8:30 a.m. ET, with analysts expecting a 0.5% increase. At 10:00 a.m. ET, consumer confidence is out and analysts are expecting a marginal improvement. Standard Chartered Is Getting Hammered. Shares are down 9.5% after results this morning revealed a 16% drop in profits in the third quarter of the year. Twitter Shares Are Tanking In Pre-Market. Shares are down by more than 11% ahead of the open, after some disappointing results. BP Is Holding UP Despite A Headache From Russia. BP's third-quarter results took a hit from declining oil prices and a sharp drop in income from Russia as Western sanctions on Moscow led to a slump in earnings from the oil major's local partner, Kremlin-controlled Rosneft . Air France’s Dutch Arm Is Reportedly Shedding 7,500 Workers. The Dutch arm of Air France-KLM plans to cut its workforce by 7,500 jobs, or 25%, largely through outsourcing, a Dutch daily newspaper reported on Tuesday. Join the conversation about this story »  | ||
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Good morning! These are the major stories already making an impact on financial markets early Tuesday. 3 Reasons Why BP Looks Uglier Than Any Other Oil Company Today | ||
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British oil giant BP has released a gloomy third-quarter result today, with profits down 17% from the previous quarter. The Financial Times reports that replacement cost profit (the preferred index of analysts because it takes into account fluctuations in oil prices to make the cost of acquiring reserves comparable) was just $3 billion from July to September, dropping from $3.6 billion in the previous three months and $3.7 billion in the same period last year. BP looks like it's in the middle of a perfect storm, with three different battles to fight: 1. The drop in oil prices is hurting profits at all oil companies, including Chevron, Royal Dutch and Exxon. Yesterday, Goldman Sachs predicted the Brent crude benchmark oil price would hit $85 in the first three months of next year. 2. BP is horribly exposed to the ongoing disaster that is Russia. It owns a 20% share in Rosneft, the Russian oil and gas company controlled by the Kremlin, which has been badly hit by the Western sanctions over Ukraine and by the general drop of the Ruble. Rosneft was expected to release its own quarterly results today but delayed without giving any explanation, according to IBT. At the same time, the Ruble hit a historic low against the Euro today, and the situation does not look as if it will improve anytime soon. 3. BP is also burdened by the giant litigation bill from the US Government over the Deepwater Horizon incident of 2010. Reuters reports that the charges already paid by the end of September reached $20 billion. The figure could triple if an appeal against a conviction for "gross negligence" is rejected. In September, US District Court judge Carl J. Barbier fined the company a further $18 billion for its responsibilities in the Louisiana disaster. Despite this triple challenge, chief executive Bob Dudley displayed confidence, and speaking with the Guardian said: “Growing underlying production of oil and gas and a good downstream performance generated strong cash flow in the third quarter, despite lower oil prices. This keeps us well on track to hit our targets for 2014." The company raised its dividend to shareholders by 5.3% today. Of course, the more BP grows production, the more it increases supply. In turn that creates downward pressure on oil prices, which increases the downward pressure on BP's profits. SEE ALSO: Crashing Oil Prices Are Spilling Into Other Markets In A Bad Way Join the conversation about this story »  | ||
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Here's What China's Richest Man Says About The Hong Kong Protests | ||
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Jack Ma, the CEO of e-commerce giant Alibaba and China's richest man, appears to have a lot of sympathy for the student-led protests disrupting Hong Kong over that last month. “Hong Kong part of me (thinks) it’s not about China and Hong Kong relationship. It’s about the young people who don’t have hope," Ma told a technology conference. "All the big guys take ... the good things and the young people feel hopeless. I understand that but they should not push too much. Both sides should listen.” The financial hub and former British colony of Hong Kong has been rocked by a student-led civil disobedience movement called "Occupy Central" that demands full democracy, sparking clashes with police and other groups. Hong Kong returned from British to Chinese rule in 1997 under a "one country, two systems" formula that allows it wide-ranging autonomy and freedoms and specifies universal suffrage for choosing its leader as an ultimate goal.
But Communist Party leaders in Beijing have insisted on screening candidates for the job first, prompting the popular, and in the most part courteous, dissent. The student-led protesters now appear to be settling in indefinitely, even though the government is powerless to change the financial hub's "Basic Law" mini-constitution and go against Beijing rule. China's Communist Party said on Tuesday it aims to prevent "external forces" intervening in Hong Kong and Macau, the official Xinhua news agency reported via its microblog. The ruling party added it supported the chief executive of Hong Kong and his administration. Neighbouring Macau, a former Portuguese colony, has seen similar protests. (h/t @BryFitz) Join the conversation about this story »  | ||
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Italy head of state to testify at Mafia trial | ||
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Rome (AFP) - Italian President Giorgio Napolitano was set to give evidence Tuesday at a landmark trial in which state officials are accused of making a secret deal with the Mafia in the 1990s. The 89-year-old head of state, who is not accused of playing a role in the deal, will be taking the stand as prosecutors attempt to unearth fresh evidence on mob bombings two decades ago which killed 21 people including top anti-Mafia judges. High-ranking ministers are suspected of having negotiated with the Sicilian Mafia to end the violence which shook Florence, Milan and Rome in exchange for softer jail sentences and better conditions in prison for convicted mobsters. The trial is being held in Palermo but moved to Rome to hear Napolitano's testimony, to be given behind closed doors. Details of Napolitano's statements were not expected to be available immediately. The man prosecutors suspect cemented the deal -- Mafia chief Toto "The Beast" Riina -- had applied to join in the hearing via video link from his prison cell, but his request was denied by the court, along with that of fellow gangster Leoluca Bagarella. At the time of the bombings Napolitano was president of the lower house of parliament. Prosecutors were expected to ask him some twenty questions about conversations one of the suspects had with one of Napolitano's former advisors. The head of state was called as a witness after phone taps revealed former interior minister Nicola Mancino had made four calls to Napolitano in which he purportedly complained about the prosecutors and asked the president to help him out. The prosecution believes Mancino, who denies wrongdoing in the case, may have told Napolitano details of conversations he had with former presidential legal advisor Loris D'Ambrosio. Seven judges and the president of the court of Palermo were at the 16th-century presidential palace for the hearing, which will be held in the "dark room", so-called because it has no windows onto the outside world. Riina, famed for being one of the bloodiest mafia bosses in history, is one of six mob-connected figures prosecutors have in their sights. He threatened to kill prosecuting magistrate Nino Di Matteo over the trial last year, according to Italian media reports. The case is likely to drag on for years. The trial is not expected to reach a verdict before the end of 2015 and under the Italian legal system it can then be appealed twice before the verdict becomes conclusive. Join the conversation about this story »  | ||
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Twitter Has Quietly Stopped Supporting Google Glass (TWTR, GOOG) | ||
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Twitter has quietly removed its official Google Glass app, and has announced that it is ending support for Google's experimental device, 9t05Mac reports. According to the website, there is now no way for new Google Glass users to tweet photos taken using their device because the Twitter app has completely disappeared. Reddit user pete716, one of the "Glass explorers" given early access to the device, posted about the removal of the official Twitter app from Google Glass: "According to Glass support Twitter is no longer developing their Glass app. This was one of my favorite and most used apps on Glass. If you remove Twitter from your Glass it disappears from Glassware and there is no option to reinstall it." It's not clear why Twitter has decided not to support the product anymore, but it does mean that until a third-party developer comes along and makes a new Twitter app for Google Glass, these devices users are stuck. SEE ALSO: Man Treated For Google Glass Addiction After Wearing Headset 18 Hours A Day Join the conversation about this story »  | ||
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YouTube Star Michelle Phan Was Once Denied A Job At A Makeup Counter — Now Her Makeup Startup Is Worth $84 Million | ||
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Michelle Phan isn't just your run-of-the-mill YouTube celebrity. She is creating an empire. Phan, who films makeup and hair tutorials for the beginner stylist to the advanced, is taking over the world, one video view at a time. She is up to a billion views on her channel, and there's no telling when the momentum will slow down. In an interview with Re/code at the Code/Mobile conference, Phan talked about her startup, a Birchbox-like competitor called "Glam Bags." Recode reports "the ferocious 27-year-old mogul had a modest start with her family — living on food stamps at one point — and now has a company with an $84 million annual sales run-rate. She has 700,000 subscribers who receive her Glam Bags — little sacks of makeup samples — for $10 a month. The makeup business is famous for its high margins." Earlier this month when Phan's book, "Make Up," came out, we reported on her and how she got her start making YouTube videos. Phan also told Re/code about a time when Lancome wouldn't even hire her to work the counter in a department store because she had no sales experience. Eventually, Lancome came calling after seeing Phan's videos, and made her their "digital spokesperson." You can read more about Phan's start here, and her interview with Re/code here. Join the conversation about this story »  | ||
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8 Things You Should Never Write In A Cover Letter | ||
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Applying for a job typically consists of providing two documents to your potential employer: a resume and a cover letter. While simple improvements can be made to a fairly straightforward resume, writing an effective cover letter can be the tricky part. Be sure not to make these mistakes. Produced by Justin Gmoser Follow BI Video: On Facebook
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Retailers Like Wal-Mart Have Started A War Against Apple That They Have No Chance Of Winning (AAPL) | ||
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Apple Pay, the new mobile payments system from Apple, is barely a week old, but it is already being attacked by the merchants it is supposed to be making things easier for. The war over mobile payments may be in its early stages, but it is one big retailers are poised to lose by not playing along with Apple. On Saturday, the pharmacies Rite Aid and CVS disabled Apple Pay from their stores, even though they have the compatible equipment that was working when Apple Pay launched last week. They also blocked Google Wallet, a similar system for Android phones that Google launched in 2012. Neither Rite Aid nor CVS will specifically say why it decided to disable Apple Pay, but it seems to be because each is part of the Merchant Customer Exchange, a consortium of the biggest retailers in the US. MCX happens to be working on its own mobile payments app, CurrentC, which is in beta testing and is expected to launch next year. But by all accounts, CurrentC is a mess and much more difficult to use than Apple Pay. For starters, it works only with your checking account, meaning you can't load your regular credit cards as you can with Apple Pay. It also requires you to scan a barcode to make payments, something proved to not be as secure as near-field communication and other encrypted technology used by Apple Pay and Google Wallet. Finally, CurrentC will allow merchants to track what you buy and store that data, something Apple Pay doesn't allow. MCX's public relations department, CEO, and COO did not respond to multiple requests for comment. CVS' statement Monday confirmed only that the retailer would not accept Apple Pay and would launch its own mobile payments system soon, presumably CurrentC. Rite Aid has not yet made a statement. But the drug stores' move and MCX's impending mobile payments app is already ruffling feathers at Apple and its credit-card partners like MasterCard. "They've taken away an option from consumers, and they haven't done anything to replace it," said James Anderson, MasterCard's senior vice president of emerging payments, in an interview with Business Insider. "You'd think they would've had something in place. But we're happy to compete with it." Apple's public take on the dispute is much more diplomatic, but the implication is clear: Early feedback of the system from customers and retailers is really good, and the retailers that are not joining or that are finding ways to block Apple Pay are going to miss out. Here's what an Apple spokesperson told Business Insider on Monday: The feedback we are getting from customers and retailers about Apple Pay is overwhelmingly positive and enthusiastic. We are working to get as many merchants as possible to support this convenient, secure, and private payment option for consumers. Many retailers have already seen the benefits and are delighting their customers at over 220,000 locations. It's a competition the MCX retailers are ultimately going to lose. As John Heggestuen of Business Insider Intelligence points out, customers are already asking for what Apple Pay provides. They want a solution that's secure, available where they shop, compatible overseas, and available on the devices they love, namely the iPhone.
Then there's the statement from Wal-Mart, one of the big leaders of MCX, on why it won't accept Apple Pay. Emphasis added: There are certainly a lot of compelling technologies being developed, which is great for the mobile-commerce industry as a whole. Ultimately, what matters is that consumers have a payment option that is widely accepted, secure, and developed with their best interests in mind. MCX member merchants already collectively serve a majority of Americans every day. MCX’s members believe merchants are in the best position to provide a mobile solution because of their deep insights into their customers’ shopping and buying experiences. Apple Pay may not be widely accepted yet, but it uses technology that is relatively easy for retailers to implement. It's also secure, arguably more secure than a credit card because your credit card number isn't actually stored on your phone. It also works only with the user's fingerprint, so unless a thief is able to get your phone and chop off your thumb, you don't have to worry. And it's simple to set up and use. There's also a strong chance that while credit-card companies are open to trying different payment platforms, they might not partner with MCX's CurrentC. According to two sources familiar with major credit-card companies and their plans for mobile payments, CurrentC might not use the same kind of secure technology that encrypts your credit-card number as Apple Pay does. So while credit-card companies may be open to trying new things, their reception might be a bit chilly toward CurrentC if it's clear that it won't be safe for customers to use. It's clear that the retailers of MCX are digging their own graves. Two of them have eliminated a viable mobile payments system without providing an alternative. The rest have chosen to ignore Apple Pay altogether. And it's all resting on CurrentC, a payments app that's more difficult to use and potentially not as secure as Apple Pay. The most likely scenario: MCX retailers will go ahead and launch CurrentC. It'll be a dud. And before long, Apple Pay, Google Wallet, and similar mobile payment methods will become the new standard.
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