Here comes Fitbit ... (FIT) | ||
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Fitbit is going public on Thursday. The maker of fitness trackers has priced its initial public offering at $20 a share, above expectations. Fitbit has raised $732 million through the IPO, giving it a valuation of about $4.1 billion. It will trade on the New York Stock Exchange with the ticker "FIT." The company had first priced its offering at $14-$16 per share with a plan to sell 29.9 million shares. This range was raised to $17-$19, and the number of shares on offer increased to 34.5 million after investors showed strong demand. Fitbit earned $745.4 million in revenues last year, sold 10.9 million devices, and had nearly 7 million paid active users, according to its IPO filing. This post will be updated as the stock comes to market. SEE ALSO: Fitbit's growth has been astounding Join the conversation about this story » NOW WATCH: Fitbit Is Going Into Nike Territory With This Inspiring Ad  | ||
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Here comes Fitbit ... (FIT) | ||
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Fitbit is going public on Thursday. The maker of fitness trackers has priced its initial public offering at $20 a share, above expectations. Fitbit has raised $732 million through the IPO, giving it a valuation of about $4.1 billion. It will trade on the New York Stock Exchange with the ticker "FIT." The company had first priced its offering at $14-$16 per share with a plan to sell 29.9 million shares. This range was raised to $17-$19, and the number of shares on offer increased to 34.5 million after investors showed strong demand. Fitbit earned $745.4 million in revenues last year, sold 10.9 million devices, and had nearly 7 million paid active users, according to its IPO filing. This post will be updated as the stock comes to market. SEE ALSO: Fitbit's growth has been astounding Join the conversation about this story » NOW WATCH: Fitbit Is Going Into Nike Territory With This Inspiring Ad  | ||
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Wall Street's titans mourn the loss of legendary rainmaker Jimmy Lee (JPM, GS, NWSA, GM) | ||
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Prominent JPMorgan investment banker Jimmy Lee died unexpectedly on Wednesday morning after reportedly experiencing shortness of breath while running a treadmill in his Darien, Conn. home. He was 62. Lee was a legend on Wall Street. He has factored prominently in many multi-billion dollar transactions, including some of the key deals that took place in the darkest days of the 2008 financial crisis. Over the years, Lee made his bones on Wall Street financing some enormous deals. This includes untangling financial messes at companies like General Motors and Chrysler during the financial crisis, and also refinancing $30 billion in Sallie Mae debt prior to that. A 2009 story in TheStreet quotes ex-News Corp. CEO Rupert Murdoch saying it was Lee who was the mind behind his $5 billion acquisition of Dow Jones. Other mega deals for the JPMorgan star banker include the United-Continental merger, the IPOs of Visa and General Motors, Dell’s take-private in 2013, and more recently the Alibaba IPO, the largest ever. Lee certainly had an impressive and successful career on the Street, but those who knew him best said that he was always much prouder of being a good dad and husband. Business Insider reached out to many folks in the industry to talk about their time with one of the most prolific Wall Street dealmakers. Here's what they had to say:
If you have a Jimmy Lee story or comment to share, feel free to email jlaroche@businessinsider.com or jmarino@businessinsider.com. Join the conversation about this story » NOW WATCH: 12 awesome facts about WWE superstar Brock Lesnar  | ||
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Why the Treasury is changing the 10 dollar bill instead of the 20 | ||
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The announcement that the Bureau of Engraving and Printing will add a woman the current portrait of Alexander Hamilton from the $10 bill has stirred a lot of conversation as to whether the Treasury was not redesigning the $20 bill instead.
It turns out that there is a very simple explanation: The move is based on recommendations from the Advanced Counterfeit Deterrence (ACD) Steering Committee. “Currency is redesigned to stay ahead of counterfeiting,” The US Treasury explains. "The ACD Steering Committee recommended a redesign of the $10 note next. The ACD will make its next recommendation based on current and potential security threats to currency notes." The ACD bases those recommendations on the “current and potential security threats to currency notes,” and it turns out that the $10 bill is at a greater threat of being counterfeit that the $20 bill. Secretary of the Treasury Jack Lew announced the change in a statement on YouTube: "I'm proud to announce today that the new ten dollar bill will be the first bill in more than a century to feature the portrait of a woman.” Alexander Hamilton will stay on the bill but share the note with a woman, who Lew is expected to choose by the end of the year. The new bill will enter circulation after 2020.
Join the conversation about this story » NOW WATCH: The 3 best tie knots for the office  | ||
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Inflation misses expectations (DIA, SPX, SPY, QQQ, TLT, IWM) | ||
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Consumer prices rose less than expected in May. Headline prices rose 0.4% and 0.1% excluding food and gas compared to last month. Prices were flat compared to a year ago and rose 1.7% on a "core" basis. Expectations were that prices will rise 0.5% month-on-month in May and rise 0.2% on a "core" basis, which excludes the price of fresh food and gas. Compared to last year, headline inflation was expected to rise 0.1% over last year and rise 1.8% on a "core" basis. May marked the first time since February that headline inflation didn't decline over last year, though the sharp decline in gas prices compared to a year ago is still weighing on the figure. More to come ... Join the conversation about this story » NOW WATCH: Forget the Apple Watch — here's the new watch everyone on Wall Street wants  | ||
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Initial jobless claims tumble | ||
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Initial jobless claims tumbled last week. Claims fell 12,000 to 267,000, the lowest level since the week ended May 9. Economists had forecast that claims for unemployment insurance fell slightly to 277,000 last week from 279,000 the prior week. This marks the 15th straight week that unemployment claims come in below 300,000. The four-week moving average of claims now stands at 276,750, down 2,000 from the previous week. In a weekly preview of the economy, UBS's Kevin Cummins wrote: "At 279,000, the latest four-week average in jobless claims remains below the trend in 2014 (308,000 in the full year, 289,000 in Q4), suggesting the trend in payrolls should remain at least as strong as last year's 260,000 per-month average." Join the conversation about this story » NOW WATCH: Two models in Russia just posed with a 1,400-pound bear  | ||
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McDonald's future isn't about America anymore | ||
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For the first time in more than 40 years, the number of McDonald's restaurants in America is shrinking. Executives told the Associated Press that closures are outpacing new fast food restaurants in America. US sales have been on the decline for the past five years. The company will close 700 underperforming restaurants this year, many in the US. It has more than 36,000 total locations. The changing attitude of US consumers is one of the greatest challenges for McDonald's, former CEO Don Thompson said in a call with investors last year. He's since been replaced by Steve Easterbrook. "Customers want to personalize their meals with locally relevant ingredients. They also want to enjoy eating in a contemporary inviting atmosphere. And they want choices; choices in how they order, choices in what they order and how they’re served," Thompson said. As McDonald's loses market share in the US, its increasingly looking like its future is overseas. The company is opening hundreds of restaurants in Europe and Asia. One of McDonald's most successful current markets is in France. The company has 1,200 locations there and is investing 200 million euros to expand more.
Business Insider's Pamela Engel notes that McDonald's franchises in France are far superior to the ones in America. Customers place orders on touch screens that feature different languages. The restaurants also have high-end offerings like an elevated McCafe and a bleu cheese burger. At McDonald's in Australia, workers prepare fresh food orders in front of customers. Items feature fresh ingredients like pineapple and guacamole.
While McDonald's has tried some of these innovations in America, its store fleet is so big that the company can't scale new ideas as easily. For instance, when McDonald's tried to launch a customizable burger program, it was plagued by operational challenges like high cost to franchisees and long wait times for customers. McDonald's also has more competition in the US than it does overseas, where chains like Panera Bread and Chipotle aren't prevalent. McDonald's might have trouble innovating in the US. But it can still dominate overseas. Join the conversation about this story » NOW WATCH: 8 fast food hacks that will change the way you order  | ||
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Gold and silver are surging (GLD, UGL, SLV) | ||
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Gold and other precious metals are rallying. On Thursday morning, Gold climbed nearly 2%, crossing the key level of $1,200 an ounce before settling near $1,198 per ounce. The metal is now up $22 from the lows reached on Wednesday before the Federal Reserve updated its monetary policy statement. Silver rallied more than 2% to as high as $16.30 an ounce. Platinum also jumped 2% to around $1,094.65 an ounce. The Fed lowered its projected trajectory of rate hikes this year through its "dot plot." More members now see zero or just one rate hike by the end of this year. Here's a chart showing the rise in gold from Wednesday:
Join the conversation about this story » NOW WATCH: 12 awesome facts about WWE superstar Brock Lesnar  | ||
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The original ‘Star Wars’ trilogy is playing in China for the first time ever | ||
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Rejoice, China! For the first time ever the original “Star Wars” trilogy — “A New Hope,” “The Empire Strikes Back” and “Return of the Jedi” — will screen in mainland China. The films are currently being shown during the Shanghai Film Festival, however, Yahoo Movies reports Disney has no plans of showing the films outside of the festival venue. “Episode IV: A New Hope” opened in the US in 1977 and though it also played all over the world, it didn’t make it to China as the country was in the wake of their Cultural Revolution, in which Chairman Mao Zedong banned the import of foreign culture. Hollywood films began making its way into the country in 1986, meaning Chinese citizens had the opportunity to see the “Star Wars” prequels — “The Phantom Menace,” “Attack of the Clones,” and “Revenge of the Sith” — during their original theatrical releases in the late 1990s/early 2000s. The prequels are also screening at the Shanghai Film Festival. However, it's likely many in China have seen bootlegs of the saga over the decades. The six-DVD box set currently sells around $12 in the Chinese commercial city. But this is still a clever move by Disney. As China is the largest film market outside of the US, it’s good to give the country an opportunity to get properly caught up on the complete saga before the latest “Star Wars” chapter, “The Force Awakens,” opens December 18. SEE ALSO: "Star Wars" spinoff writer tweeted "Star Trek" fan Neil deGrasse Tyson for help on the movie Join the conversation about this story » NOW WATCH: The original design of the Millennium Falcon in 'Star Wars' was completely different  | ||
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Europe marks Waterloo bicentenary with call for unity | ||
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Brussels (AFP) - European royals and diplomats gathered in Belgium on Thursday to mark the 200th anniversary of the Battle of Waterloo, a turning point for the continent which still touches a nerve and stirs national passions. The stress was on modern-day reconciliation and the sacrifice of some 47,000 dead or wounded soldiers on the fields around the small drab town just south of Brussels, the target of Napoleon's ill-fated drive north in June 1815. France and Germany however only sent their ambassadors to a ceremony that attracted kings and dukes from elsewhere in Europe, reflecting that fact that history still runs deep in a corner of the continent scarred by centuries of war. Just as two centuries ago when the French emperor faced off against allied forces, it rained overnight and the skies were overcast for the ceremonies, carried live on Belgian television. Belgian Prime Minister Charles Michel called for unity in a "European project" which faces modern-day challenges of conflict on its borders in Ukraine and economic worries. "The enemies of yesterday are the allies of today" said Michel.
- 'European hope' -
The solemn ceremonies began at 11:00 am (0900 GMT), the moment the first musket balls flew as Anglo-Dutch forces led by Britain's Duke of Wellington engaged Napoleon's famed and once invincible Grande Armee. In Britain, the focus was on a special service at St Paul's Cathedral attended by the heir to the throne Prince Charles and his wife Camilla. On Wednesday, Charles had unveiled a memorial at the Hougoumont Farmhouse, where allied forces fought off repeated French attacks as Napoleon desperately sought to break their lines. Standing at the foot of the famous Waterloo monument topped by a defiant lion looking south, Michel said the bloodshed had not been for nothing because Waterloo ushered in the modern era and the idea of a united Europe. "A European hope took form for the first time, even if only for a brief time," he said. Waterloo remains a sensitive subject, especially for France which now sees itself as a pillar of the European Union alongside Germany, and whose relationship to the diminutive Napoleon remains ambivalent. "History is behind us," French Defence Minister Jean-Yves Le Drian told BFMTV. French President Francois Hollande, he noted, was due to attend ceremonies marking the June 18, 1940 rallying call issued by General de Gaulle over the BBC for resistance against German forces in France. As for Napoleon, Le Drian said he recognised his great achievements but also "certain failures, this drive for power and extending borders which was not right." Belgium angered France this month by minting a special 2.5-euro Waterloo coin after France forced it to scrap a two-euro coin saying it would cause an "unfavourable reaction in France".
- Thousands of spectators -
A total of 200,000 spectators are expected to make their way to Waterloo, starting with Thursday's commemorative service and ending with two days of battle re-enactments on Friday and Saturday. Belgium's King Philippe led the attendance, which included the Grand-Duke of Luxembourg and the Duke of Kent, the cousin of Britain's Queen Elizabeth II, along with Frans Timmermans, the first vice-president of the European Commission. The absence of Hollande and German Chancellor Angela Merkel was cause for regret. "It's a shame," Charles Bonaparte, a descendant of Napoleon's brother Jerome, said Wednesday. In a symbolic meeting Wednesday, Charles Bonaparte on Wednesday shook hands with the current day Duke of Wellington, and Prince Nikolaus Bluecher von Wahlstatt, whose ancestor led the Prussians who saved the day for the allied forces. The battle was a pivotal moment in European history, when around 93,000 French troops led by Napoleon faced off against 125,000 British, German and Belgian-Dutch forces commanded by the Duke of Wellington and Field Marshal Bluecher. Finally defeated by an alliance of monarchies determined to end years of European war following the 1789 French Revolution, Napoleon was exiled to the island of Saint Helena in the south Atlantic Ocean, where he died in 1821. The victors redrew the map of Europe and the continent enjoyed almost a century of relative peace until the carnage of World War I tore it apart again. Join the conversation about this story »  | ||
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DAN LOEB ON JIMMY LEE: 'I lost the closest thing I've had to a big brother' | ||
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Prominent dealmaker Jimmy Lee, the vice chairman of JPMorgan, unexpectedly died on Wednesday morning. He was 62. Lee's sudden death sent shock-waves through Wall Street with many of the industry's biggest titans mourning his loss. Lee had a lot of friends on Wall Street. He was also someone who was regarded as a legend. Hedge fund manager Daniel S. Loeb, the founder of Third Point LLC, was good friends with Lee. Loeb also looked to Lee as a mentor and "big brother." The fund manager shared a heartfelt tribute that he wrote: "Jimmy loved Wall Street more than anyone I’ve ever known. He wasn’t driven by money or deals but by his passion for people. There was no more loyal friend to be had on Wall Street, nor anyone whose wise counsel I valued more. "For example, when I told Jimmy I planned to send a Japanese CEO a letter announcing we were becoming active in its stock, he advised me to deliver it in person, which I did. When that act earned us praise in Japan for showing special sensitivity to the country’s cultural customs, I repaid him by making him a tee shirt that said, 'I advised Dan Loeb on his investment in Sony and all I got was this lousy tee shirt.' Later, after Third Point became the first shareholder to meet with Fanuc in 40 years, Jimmy purchased a linen jacket in the company’s distinctive corporate color – bright yellow – for me. "My last correspondence with Jimmy was a note from him titled 'Bragging', where he told me about his son’s admission into a highly competitive securities analysis program at Columbia Business School. He signed off by telling me that despite his long and successful career, his 'greatest accomplishment' was his children. With Jimmy’s passing, our community lost a little bit of its humanity and I lost the closest thing I’ve had to a big brother. My thoughts and prayers are with his family, who we discussed frequently, and who he was devoted to and loved so much." Join the conversation about this story » NOW WATCH: 11 facts that show how different China is from the rest of the world  | ||
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European stocks fall before crunch EU talks on Greece | ||
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London (AFP) - Europe's main stock markets fell on Thursday ahead of crunch European Union talks over Greece, as hopes faded of a deal between Athens and its creditors over bailout repayments, dealers said. London's benchmark FTSE 100 index of top companies dropped 0.26 percent to 6,660.0 points in late morning deals. The CAC 40 in Paris lost 0.77 percent to 4,753.80 points and Frankfurt's DAX 30 slipped 0.64 percent to 10,907.0 compared with Wednesday's closing levels. The Greek ATHEX index meanwhile sank 2.48 percent to 664 points. In earlier foreign exchange trade, the euro hit a one month peak at $1.1420 with the dollar, after the Federal Reserve said any rises in US interest rates would be slow. Eurozone finance ministers were set to hold a crunch meeting on Greece after a barrage of warnings that the country risks a damaging exit from the EU if it fails to strike a deal with creditors to free up 7.2 billion euros ($8.1 billion) in blocked bailout funding. Cash-strapped Athens badly needs the aid to honour loan repayments to the International Monetary Fund by the end of June.
- Lack of progress -
"Hopes of Greece reaching a deal to unlock the tranche of funds during today’s Eurogroup meeting are very slim," said IHS Global Insight economist Diego Iscaro. "The lack of progress in the negotiations significantly increases the probability of Greece not making the 1.5-billion-euro IMF payment due at the end of June." Iscaro added that "even if a technical default is not triggered yet, not paying the IMF would inevitably send shockwaves, not only in Greece, but also across the eurozone." As negotiations between Athens, the EU, the IMF and the European Central Bank over the last tranche of Greece's massive international bailout grew increasingly acrimonious this week, officials have started openly discussing the prospect of Greece crashing out of the euro. On Wednesday, a day ahead of the Luxembourg meeting of the eurozone's 19 countries, Greece's central bank warned for the first time that the country could suffer a "painful" exit from the single currency area -- and even the European Union -- if it fails to reach a deal. In later morning deals on Thursday, the euro pulled back to stand at $1.1394 ahead of the Eurogroup gathering, up from $1.1335 late on Wednesday in New York.
-- Speculation over weekend meeting --
"The Eurogroup meeting today will probably conclude with no deal between Greece and its creditors," added Societe Generale analysts in a research note to clients. "All eyes are now on the 25/26 June summit, although press reports indicate that an extraordinary gathering could take place over the weekend." In Asia on Thursday, equities headed lower after the Federal Reserve said any rises in US interest rates would be slow, while Chinese stocks tumbled on liquidity concerns. Sydney fell 1.26 percent, Tokyo sank 1.13 percent and Hong Kong shed 0.22 percent. Shanghai tumbled 3.67 percent on liquidity fears as several new firms prepare to list while profit-takers also moved in after a surge in the index over the past year that has seen it pile on about 140 percent. Join the conversation about this story »  | ||
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In Macedonia, EU-bound migrants cycle to better lives | ||
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Demir Kapija (Macedonia) (AFP) - Fleeing their trouble-torn countries in Africa, the Middle East and Asia, streams of EU-bound migrants are driving an unexpected trade in a quiet town in Macedonia -- bicycles. Thousands have arrived in Demir Kapija, a few kilometres (miles) from the Greek border, after journeys by foot, train and boat. But in this picturesque town it is bicycles they seek for the next leg. The migrants aim to head north across the small, land-locked Balkan state into neighbouring Serbia and finally a European Union country, where they hope to build better lives. In Macedonia, authorities ban migrants from using public transport but they tolerate walking and cycling -- which has seen the price of two-wheelers quickly double in this town of about 3,500 people. Walid Amoud, a geography professor from Damascus, looked over dozens of bicycles -- new and old -- lined up outside a small shop in the centre of Demir Kapija before negotiating to buy one for 125 euros ($140). "I'm travelling with my four daughters, my son and a five-month-old baby," he told AFP. The family's dream destination is Germany, which they believe is their best chance for a new start. Like Amoud, the vast majority of migrants arriving in Macedonia are Syrian, but some hail from Afghanistan or restive African states.
- 'Die on the road' -
Near the town's old train station, a group that walked all the way from Thessaloniki on Greece's Aegean coast, a trek of 130 kilometres (80 miles), rested in the shade. While Greece is part of the EU, its grave economic crisis has prompted the migrants to try their luck elsewhere. "We fled death to die on the road. Our situation is getting worse every day," said 37-year-old Bara, an English language professor from Homs in western Syria, travelling with her four daughters. The youngest one, a five-year-old brunette with blue eyes, is autistic. Bara said they had faced little interference from authorities in the areas they crossed -- Turkey on foot, the Aegean Sea by boat to Athens, Greece by train to Thessaloniki and then again on foot to Demir Kapija. "To us everything is forbidden, but nevertheless they let us continue our journey," she said in tears. The price of bikes ranges from 120 to 200 euros and acquiring one spares migrants the other option -- walking across the country. A local trader, declining to give his name, told AFP that the price of bicycles had "doubled within a week". "One has to live," he said simply, referring to the ex-Yugoslav state's own troubles as it faces a political crisis and ethnic tensions involving its Albanian minority. On Macedonia's main north-south road, groups of several dozen migrants cycle up the Vardar valley, bearing meagre backpacks with all their belongings. The route is long and dangerous: in late April, 14 migrants from Somalia and Afghanistan died when they were hit by a passenger train while sitting too close to the tracks.
- Smuggled into Serbia -
Once they reach the town of Kumanovo in northern Macedonia, migrants sell their bikes for at most 50 euros -- now an unnecessary burden since crossing into Serbia is done secretly in operations negotiated by smugglers. According to the latest report by EU border agency Frontex, Macedonian smugglers charge between 120 and 200 euros for passage to the Serbian border. While authorities tend to turn a blind eye to the cyclists and pedestrians, interior ministry spokesman Ivo Kotevski said they were targeting the smugglers since they "earn a lot of money from illegal immigrants". Last week police arrested four suspected smugglers and detained 128 migrants hiding in houses in the northern village of Vaksince as they waited to cross the border. If the migrants make it into Serbia, the country has land access to three members of the 28-nation EU -- Croatia, Hungary and Romania. With the massive flow of people trying to reach Europe, the number entering Hungary shot up from 2,000 in 2012 to 54,000 this year so far, with 95 percent of them arriving from Serbia, according to official figures. Hungary reacted Wednesday, saying it was building a barrier on its border with Syria to keep them out -- triggering "surprise and shock" in Serbia whose prime minister said it "can't be responsible for the situation created by the migrants". The move was announced as Pope Francis hit out at nations that "close the door" to those seeking a safe haven from war, poverty and persecution. Macedonia's parliament is due to vote next week on a law that would enable migrants to use public transport legally. Now, "all those whom we detain are expelled to Greece, hundreds every day, but their number is too high," said spokesman Kotevski. So for now the migrant continue to cycle, with hundreds every day visible winding their way up the Vardar valley. Join the conversation about this story »  | ||
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