Wall Street doesn't think the big changes at Twitter will really change anything at all (TWTR) | ||
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Twitter CEO Dick Costolo will step down on July 1. Investors took the news well after the announcement on Thursday, and the stock surged by up to 7% in after-hours trading. In pre-market trading on Friday, Twitter's stock rose by as much as 5%. But research notes out Friday suggest that Wall Street analysts are not expecting a drastic turnaround in the company's performance under the new leadership. Morgan Stanley analysts view the stock as "Attractive," and they note that Twitter is unrivaled in providing real-time news and information. However, they add, "even without Dick Costolo in the CEO seat, uncertainty around improving user growth and engagement and advertiser Return On Investment still remain." Macquarie analysts have never recommended that investors buy Twitter shares, which are flat year-to-date, and up 7% over the past 12 months. In their note Friday, they write that Thursday's news changes nothing, and CEOs don't resign when everything is going well: "The bottom line is that, as Jack Dorsey stated, TWTR has unmet potential. And the surprise timing of this announcement, combined with the "steady-as-she-goes" tone of the executives on the conference call, indicate to us that TWTR will continue to underperform until it can either a) significantly improve its execution against its current strategy, or b) institute a new vision." Wells Fargo analysts note that there's been a high turnover of the CEO position; Jack Dorsey will be Twitter's fourth chief executive in nine years. "By reaffirming strategy and keeping Costolo on the board, could Twitter's board be sending a signal that no changes are likely? We believe Twitter is an invaluable and incomparable source for real time news, but we continue to believe that its product and positioning remain confusing and ill-defined for those not counted among its core enthusiast user base." The firm, however, is "Overweight" the stock. Twitter's rally after-hours is a sign that investors are at least satisfied that the status quo has changed, the analysts wrote. "We believe the key question remains whether TWTR will make necessary changes to lure back the roughly 700MM+ users we believe use the service infrequently, or have left altogether." In an interview with Business Insider on Thursday, Costolo said it's beneficial that Dorsey, who's already very active and familiar with the company, is taking over. But that may be the problem. SEE ALSO: We interviewed Jack Dorsey and Dick Costolo. Here's what they had to say ... SEE ALSO: Twitter is up 5% Join the conversation about this story » NOW WATCH: What It Was Like On The Trading Floor During Twitter's IPO  | ||
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It could be a long summer for the markets (DIA, SPX, SPY, QQQ, IWM, TLT) | ||
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It could be a long summer for the markets. Next week, the Federal Reserve will meet, announcing its latest monetary policy decision on Wednesday. Currently, markets expect the Fed won't change its interest rate policy — keeping rates pegged near 0% — though the Fed could lay the groundwork for rate hikes at future meetings. Following Thursday's retail sales report, economists on Wall Street noted that with the economy appearing to be back on track, we could be in for a long summer of Fed watching. In a note to clients on Thursday, Stephen Stanley, chief economist at Amherst Pierpont wrote that the latest retail sales report "inches the Fed one step closer to a September rate hike." But by September, Stanley thinks the Fed, the economy, and the market will be itching for action from the Fed, writing: "By the end of the summer, passing in June and lifting off in September is going to feel like missing your commuter train by two minutes and having to wait half an hour for the next one. June 17 is a little too soon to bring the doves on board, but September 16 (97 days and counting) is going to feel like an awfully long time to wait." Stanley expects second quarter GDP growth will come in above 3%.
In the first quarter, the Atlanta Fed was the big "winner," nailing the forecast of a well-below-expectations start to the year. And so the uptick in its outlook for the second quarter is garnering attention as folks look for signs that the long-awaited economic snapback is here. Over the last few months, people paying attention to the markets and the economy have had a bit of a wild trip — going from an economy that looked fine, to one that looked like it could be heading into recession, back to an economy that appears to be shaking off a winter slowdown. One could argue an economy growing right around its post-crisis trend isn't one the Fed needs to cool off by raising rates. Inflation, after all, is still running below the Fed's target. But with a labor market that looks increasingly tight as job openings, jobless claims, payroll gains, and wage growth all continuing to strengthen — and a Federal Reserve that looks eager to raise rates at some point this year — each piece of strong data that rolls in solidifies the case to prepare, for the first time since 2006, for the Federal Reserve to raise rates. SEE ALSO: America is back Join the conversation about this story » NOW WATCH: Here's how Floyd Mayweather spends his millions  | ||
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On Thursday, we noted that the Producer prices rise more than expected | ||
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Producer prices rose more than expected in May, and posted the biggest increase since 2012. Prices rose 0.5% month-over-month – the highest in five years – and fell 1.1% year-over-year. Prices fell 0.4% in April. Excluding food and energy, core PPI rose 0.1% and 0.6% respectively. A 15.6% spike in fuel prices accounted for three-quarters of the increase, according to the release from the Bureau of Labor Statistics. Economists had forecast that producer prices climbed by 0.4% month-over-month and fell 1.1% year-over-year. Excluding food and energy, core PPI is estimated to have climbed by 0.1% and 0.9%, respectively. In a preview of the report, Nomura wrote: "Although the lagged effect of the stronger dollar and continuing decline in food prices probably continued to exert disinflationary pressures, the recent stabilization in energy prices and a rebound in retailers’ margins are expected to push up the headline index of PPI." Join the conversation about this story » NOW WATCH: 5 morning rituals to keep you productive all day long  | ||
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A prison employee reportedly confessed to smuggling in power tools to help 2 convicts escape | ||
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A 51-year-old prison employee who's suspected of having a relationship with an inmate reportedly confessed to smuggling power tools into the maximum-security facility to help two convicts escape. Joyce Mitchell was allegedly supposed to be the duo's getaway driver after they broke out of Clinton Correctional Facility in upstate New York, but she apparently backed out at the last minute and checked herself into a hospital for "nerves." The Times Union in Albany reports that Mitchell confessed her role in the scheme to state police. She reportedly told authorities that she smuggled power tools into the prison and gave the inmates access to a cellphone. The inmates then allegedly used the power tools to cut holes through a steel wall in their cells and pipes in the bowels of the prison to escape.
Clinton County District Attorney Andrew Wylie confirmed to CNN on Friday that Mitchell "provided some form of equipment or tools" to Matt and Sweat. Authorities are still searching for the two convicts, 48-year-old Richard Matt and 34-year-old David Sweat. They were both serving time for murder. Earlier this week, the FBI told the Times Union that authorities believe the escapees are within a 5- to 10-mile radius of the prison. They likely had to escape on foot after the getaway plan with Mitchell fell through.
Mitchell worked as an industrial-training supervisor in the tailor shop of the prison and is thought to have developed a relationship with Matt. He reportedly spent months wooing her in order to get her to participate in his escape plot. Senior government officials told NBC News that Mitchell "thought it was love" with Matt. State corrections officials investigated Michell's relationship with Matt after a coworker filed a complaint, but they reportedly did not find enough evidence to take action against Mitchell. Matt was likely able to interact with Mitchell because he was being held on the "honor block" of the prison for good behavior and was allowed to spend most of his time outside of his cell.
SEE ALSO: Everything we know about the elaborate maximum-security prison break in New York Join the conversation about this story »  | ||
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3 phrases to use in a happy relationship | ||
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Licensed psychotherapist and relationship expert, Rachel Sussman lists three simple phrases you should be using to maintain a happy and healthy relationship with your partner. Produced by Kevin Reilly and Sam Rega Follow BI Video: On Facebook Join the conversation about this story »  | ||
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The government's own data show increased immigration creates MORE jobs | ||
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"They're taking our jobs!" That's the rallying cry of people who want to reduce immigration into the UK, or indeed any country that migrants want to enter. At an emotional level, it feels true: If there is one company with one job vacancy, then you're more likely to get that job if there isn't a Romanian immigrant also filling out the job application alongside you. But it turns out that this feeling is completely false, and the UK's Office for Budget Responsibility — a non-partisan, independent government agency which provides objective data — has just published some great charts showing the opposite is true: Increased immigration actually creates jobs in the long run. Economists have known this for years, of course. Increased immigration has the same effect as a baby boom — it creates a new pool of young, productive workers, and it increases the percentage of tax-paying workers vs the percentage of elderly people who must be supported by taxes and welfare schemes. In a nutshell: More immigrants = more workers = more taxes = more prosperity for everyone. (Credit Suisse just published some data on this showing the same thing, if you want more.) Understanding this economic fact has become crucial now that UKIP, the anti-immigration party, has seats in parliament. To fend off the UKIP threat, David Cameron's Conservative government has vowed to restrict immigration. It's crucial because restricting immigration turns out to have a negative effect on job creation, the OBR data show. Here are the OBR projections. First, look at the projected percentage of people employed under various population scenarios. A baby boom would be the best thing to happen ("young age structure"). But next to that, high immigration will create a higher employment percentage rate:
In terms of total jobs created, high immigration creates more jobs. There would be about 4 million more jobs in the UK if there was high migration through 2064, the OBR projects: Here is why this is important (other than that it would be nice if our elected representatives were literate in basic economics): You need workers to pay taxes to provide the basic services of modern society, health, education and welfare. Bonus chart! What you pay in tax, and what you receive in benefits, over the course of an average life: Join the conversation about this story » NOW WATCH: Why Putin is the most powerful man in the world  | ||
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The 13 fastest-growing economies in the world | ||
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China's crazy growth has been one of the biggest stories over the past several decades. But the Chinese economy certainly isn't the only one posting huge growth rates. We compiled a list of 13 countries with the highest projected compounded annual growth rate (CAGR) from 2014 through 2017 based on the forecasts from the World Bank's Global Economic Prospects. Keep in mind that the fastest-growing economies typically aren't among the largest, most developed ones. In fact, most of these countries suffer from high income inequality, low levels of per capita gross domestic product, elevated political instability, and rampant corruption. 13. China 2015 GDP: +7.10% 2016 GDP: +7.00% 2017 GDP: +6.90% 2014-2017 GDP CAGR: +7.10% Economy: China is a manufacturing powerhouse and exporter, and many believe that its economy will surpass that of the US within the next decade. The government faces major problems, however, as the country transitions into a consumption-based economy. Additionally, per capita income is below the world average. Source: World Bank, CIA World Factbook 12. Rwanda 2015 GDP: +7.00% 2016 GDP: +7.00% 2017 GDP: +7.50% 2014-2017 GDP CAGR: +7.12% Economy: Ninety percent of the population works in subsistence agriculture or mineral agroprocessing, while tourism, minerals, coffee, and tea round out Rwanda's economy. Though the country has taken significant steps forward since the 1994 genocide, 45% of the population still lives below the poverty line. Source: World Bank, CIA World Factbook 11. Tanzania 2015 GDP: +7.20% 2016 GDP: +7.10% 2017 GDP: +7.10% 2014-2017 GDP CAGR: +7.15% Economy: Tanzania has recently seen high growth rates because of gold production and tourism. The economy also runs on telecommunications, banking, energy, and mining, as well as agriculture. In terms of per capita income, however, the country is one of the poorest in the world. Source: World Bank, CIA World Factbook See the rest of the story at Business Insider  | ||
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Wall Street doesn't think the big changes at Twitter will really change anything at all (TWTR) | ||
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Twitter CEO Dick Costolo will step down on July 1. Investors took the news well after the announcement on Thursday, and the stock surged by up to 7% in after-hours trading. In pre-market trading on Friday, Twitter's stock rose by as much as 5%. But research notes out Friday suggest that Wall Street analysts are not expecting a drastic turnaround in the company's performance under the new leadership. Morgan Stanley analysts view the stock as "Attractive," and they note that Twitter is unrivaled in providing real-time news and information. However, they add, "even without Dick Costolo in the CEO seat, uncertainty around improving user growth and engagement and advertiser Return On Investment still remain." Macquarie analysts have never recommended that investors buy Twitter shares, which are flat year-to-date, and up 7% over the past 12 months. In their note Friday, they write that Thursday's news changes nothing, and CEOs don't resign when everything is going well: "The bottom line is that, as Jack Dorsey stated, TWTR has unmet potential. And the surprise timing of this announcement, combined with the "steady-as-she-goes" tone of the executives on the conference call, indicate to us that TWTR will continue to underperform until it can either a) significantly improve its execution against its current strategy, or b) institute a new vision." Wells Fargo analysts note that there's been a high turnover of the CEO position; Jack Dorsey will be Twitter's fourth chief executive in nine years. "By reaffirming strategy and keeping Costolo on the board, could Twitter's board be sending a signal that no changes are likely? We believe Twitter is an invaluable and incomparable source for real time news, but we continue to believe that its product and positioning remain confusing and ill-defined for those not counted among its core enthusiast user base." The firm, however, is "Overweight" the stock. Twitter's rally after-hours is a sign that investors are at least satisfied that the status quo has changed, the analysts wrote. "We believe the key question remains whether TWTR will make necessary changes to lure back the roughly 700MM+ users we believe use the service infrequently, or have left altogether." In an interview with Business Insider on Thursday, Costolo said it's beneficial that Dorsey, who's already very active and familiar with the company, is taking over. But that may be the problem. SEE ALSO: We interviewed Jack Dorsey and Dick Costolo. Here's what they had to say ... SEE ALSO: Twitter is up 5% Join the conversation about this story » NOW WATCH: What It Was Like On The Trading Floor During Twitter's IPO  | ||
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Polar bears develop taste for dolphins as Arctic warms | ||
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Oslo (AFP) - Norwegian scientists have seen polar bears eating dolphins in the Arctic for the first time ever and blame global warming for the bears expanding their diet. Polar bears feed mainly on seals but Jon Aars at the Norwegian Polar Institute has photographed dolphins being devoured by a bear and published his findings in the latest edition of Polar Research this month. "It is likely that new species are appearing in the diet of polar bears due to climate change because new species are finding their way north," he told AFP. The first incident he documented was in April 2014 when his team came across a polar feeding on the carcasses of two white-beaked dolphins. Although dolphins are regularly seen in the Norwegian Arctic in the summer months when the ice has melted, they have never been observed during winter or spring when the sea is usually still covered in sheets of ice. But Norwegian scientists have reported a strong retreat of ice and two nearly ice-free winters in recent years which they said could have attracted the dolphins further north, where they probably became trapped by the sudden arrival of dense ice blown into a fjord by strong northerly winds. Aars said the bear he photographed had probably caught the two dolphins when they surfaced to breathe through a tiny hole in the ice. "Even if they saw the bear, the dolphins did not necessarily have any other choice," he said. - Saved one for later - In the photos a visibly skinny old male bear devours one of the dolphins and appeared to have stored a second one under snow for later -- something which scientist had never seen before. "We think that he tried to cover the dolphin in snow in the hope that other bears, foxes or birds would have less of a chance of finding it. Maybe to be able to eat it a day or two later, once he had digested the first one," said Aars. After the first incident in 2014, a further five cases of dolphins stranded or captured and then eaten by bears have been reported. "I don't think that this signifies a great upheaval" in the diet of the carnivores, said Aars. "It's just that the polar bear is coming into contact with species they have not been used to meeting until now." Sitting at the top of the Arctic food chain, polar bears are opportunistic predators that are also known to feed on small whales if the opportunity arises. Join the conversation about this story »  | ||
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An investment bank made this epic presentation on the future of digital media (FB, GOOG) | ||
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Investment banker Terrence Kawaja, founder and CEO of LUMA Partners, the company famed for its LUMAscapes, has a new, epic presentation on the state of digital media. It takes a specific focus on digital media and marketing. The central themes are around "open" platforms versus "closed" ones. The top 5 trends LUMA picks out for 2015 and beyond are: Programmatic, mobile, omnichannel/personalization, identity, and convergent TV. Here we go! LUMA's commentary is on the bottom of each slide.   See the rest of the story at Business Insider  | ||
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The most innovative company in the world — as ranked by patents — isn't actually Apple | ||
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It is frequently said that Apple is the most innovative company on earth because its employees file more patents than any those of other company. Some years, that is actually true. But not anymore. This year, 10 companies have filed more patents than Apple. Sqoop indexes new patent applications and grants as they are published by the United States Patent and Trademark Office. It has pulled together a list of the companies that have applied for the most patents, and received the most grants, from the USPTO so far this year. And while Apple is often lauded for its innovation, it isn't applying for or being granted the most patents. IBM has been granted the most patents this year, having won 3,059 at the end of May. (Yes, that IBM, the big, old enterprise tech company that everyone thought was being left in the dust by the newcomers of Silicon Valley.) Samsung comes in second, with 3,052 patents granted. Canon is third with 1,782. Apple is at No. 11, having been granted 780 patents this year, and Google is at No. 5, followed by Sony and Microsoft. Here are the top 40 companies by number of patents granted in 2015: 1. International Business Machines Corporation (IBM) – 3,059 2. Samsung – 3,052 3. Canon Kabushiki Kaisha – 1,782 4. LG – 1,263 5. Google – 1,083 6. Sony Corporation – 1,074 7. Microsoft – 1,037 8. Qualcomm Incorporated – 1,034 9. Kabushiki Kaisha Toshiba – 1,022 10. Panasonic – 896 11. Apple – 780 12. General Electric Company – 730 13. Intel Corporation – 711 14. Ricoh Company – 695 15. Seiko Epson Corporation – 625 16. Taiwan Semiconductor Manufacturing Company – 620 17. Toyota Jidosha Kabushiki Kaisha – 613 18. Fujitsu Limited — 570 19. GM Global Technology Operations – 542 20. Hewlett-Packard Development Company – 531 21. Telefonaktiebolaget L.M. Ericsson – 509 22. Brother Kogyo Kabushiki Kaisha – 486 23. BlackBerry – 461 24. Broadcom Corporation – 454 25. Semiconductor Energy Laboratory – 451 26. Robert Bosch GmbH – 436 27. Honda Motor Co. – 417 28. Sharp Kabushiki Kaisha – 410 29. Hon Hai Precision Industry Co. – 408 30. Amazon Technologies – 391 31. The Boeing Company – 391 32. Siemens Aktiengesellschaft – 388 33. Micron Technology Inc. 371 34. Covidien LP – 370 35. Ford Global Technologies – 359 36. Cisco Technology – 353 37. AT&T Intellectual Property – 351 38. Nec Corporation – 336 39. Electronics and Telecommunications Research Institute – 327 4o. SK Hynix Inc. – 323 But Samsung has actually applied for the most patents in 2015, coming in at No. 1 on Sqoop's list with 2,487. IBM is at No. 2, having applied for 1,764, and Toshiba is at No. 3 with 989. On this list, Apple is all the way down at No. 23, having applied for just 279 patents through May. Here are the top 40 companies by number of patents applied for in 2015: 1. Samsung – 2,487 2. IBM – 1,764 3. Kabushiki Kaisha Toshiba – 989 4. LG – 856 5. General Electric Company – 664 6. Qualcomm Incorporated – 617 7. Taiwan Semiconductor Manufacturing Company – 561 8. Sony Corporation – 528 9. Hyundai Motor Company – 514 10. Toyota Jidosha Kabushiki Kaisha – 462 11. Google – 439 12. Ford Global Technologies – 437 13. Mitsubishi Electric Corporation – 436 14. Microsoft – 383 15. Fujitsu Limited – 373 16. SK Hynix – 333 17. Ricoh Company – 330 18. Telefonaktiebolaget L M Ericsson – 330 19. Hon Hai Precision Industry – 323 20. GM Global Technology Operations – 296 21. Electronics and Telecommunications Research Institute – 293 22. Fujifilm – 282 23. Apple – 279 24. Broadcom Corporation – 252 25. Cisco – 254 26. Xerox Corporation – 254 27. The Boeing Company – 253 28. Siemens Aktiengesellschaft – 243 29. AT&T Intellectual Property – 242 30. Robert Bosch GmbH – 236 31. Sharp Kabushiki Kaisha – 234 32. Honda Motor Co. – 214 33. Fuji Xerox Co. – 213 34. NEC Corporation – 195 35. Oracle International Corporation – 194 36. Wistron Corporation – 193 37. Baker Hughes Incorporated – 193 38. Verizon Patent and Licensing – 161 39. Nvidia Corporation – 161 40. Bank Of America Corporation – 160 Join the conversation about this story » NOW WATCH: 5 cool tricks your iPhone can do with the latest iOS update  | ||
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