4/27/2016

Oil Rises

Oil hit its 2016 high of $44 after U.S Crude Stockpiles expectantly declined. Earlier this year when the Fed raised rates, it weighed down oil prices. The rally in oil today was underpinned by a weakening dollar.

Weakening Dollar

The dollar weakened containing its decline since its speak in November. This is because interest rates are expected to remain low after today’s Fed meeting.

Self Driving Car Coalition

Self-driving cars has been showing slowing growth because of the resistance of lawmakers. But Google, Uber, Ford, Lyft and Volvo announced a coalition that intends to accelerate federal policy surrounding self-driving cars by pushing for a common set of regulations nationwide. The coalition said David Strickland, the former top official of the U.S. National Highway Traffic Safety Administration (NHTSA), the top U.S. auto safety agency that is writing new guidance on self-driving cars, will be the coalition’s counsel and spokesman. California has proposed barring self-driving cars that do not have steering wheels, pedals and a licensed driver ready to take over in an emergency, which Google has opposed. Under current regulations, fully autonomous vehicles without human controls are illegal.

IPhone Sales Decline

Apple posted its first quarterly sales decline in 13 years. And this is the first time IPhone sales have declined year over year. IPad sales also declined while apple watch barely grew. Fewer people updated to the IPhone 6 and China markets stagnated due to adverse economic conditions. The tech giant is now looking into electric vehicles and augmented reality in hopes of boosting future growth

Twitter's Stats

Twitter, the third largest social network behind Facebook and instagram, has 310 monthly active users, which is a 3% increase. But they lowered their second quarter revenue expectations that brought shares down 12%. Twitter said it expects second-quarter revenue of $590 million to $610 million, well below analysts' estimates of $678 million.

Despite its struggles with investors, Twitter scored a big win earlier this month as the National Football League chose it to stream Thursday night games during the 2016 regular season.

Ant Financial is the Most Valuable Private Internet Company

Alipay’s owner, Ant Financial, said it closed a $4.5-billion funding round, which values the company at a figure “very close to $60 billion. This is now the world’s most valuable privately held Internet Company next to Uber, Xiami and AirBnB. Alipay (China’s most popular third-party payment software) has over 175 million daily transactions.

Google Developing an Incubator

Google is developing an “in-house incubator” codenamed Area 120, through which select employees will develop their own startups full-time for a few months while still remaining employed by Google. It’s a callback to the classic Google tradition that 20% of employees’ time should be spent on passion projects. The goal is a classic win-win scenario: employees can follow their startup dreams without risking their livelihoods if they crash and burn, and Google holds on to its best talent while also getting an inside track to invest in the next Snapchat or Twitter

Gopro's Virtues and Vices

Shares of Gopro fell more than 5% after analysts said they are skeptical that its recent acquisition and new software will help the company turn around. However with its new drone launch (Karma) at the end of the second quarter, there is some optimism with expected first year unit sales to hit 6 million. They acquired a 360-camera startup and multiple editing startups in order to diversify. But the action camera market is saturated.

Facebook Wants People to Share More

Mark Zuckerberg & Co. are working on a standalone camera app with the aim of helping you create and share more content. WSJ's sources indicate that the app has two prominent features: still photos and the ability to broadcast live video footage quickly. There's a chance this new app will never be released, but the move would make sense for Facebook, especially if sharing really is on the decline.

Charter Successfully Acquires Time Warner 

Federal regulators approved Charter Communications’ $65.5 billion acquisitions of Time Warner Cable and Bright House Networks, enabling the creation of a new cable giant as the industry focuses more on broadband as traditional TV declines. Anti monopoly restriction include protecting streaming video companies and providing cheaper broadband services to low-income families. Charter also promised that for seven years it would not impose data caps on broadband users who can run up big bills when watching online video, and that it would not charge companies like Netflix extra to connect to Charter customers. Over the last few years, the industry has greatly shifted from a business controlled by hundreds of regional outfits to one controlled by three major players — Comcast, Charter and Altice, the European company that recently made a deal for Cablevision — that wield more heft over the country’s broadband and entertainment infrastructure. That heft gives the companies more leverage in negotiations with TV companies over programming and distribution deals, as well as more leverage over what crosses their broadband pipes and the future of online video. It is starting to look like a tri-opoly.

Goldman Sachs Isn't Exclusively for the Opulent Anymore

Goldman Sachs just introduced GS Bank, an online service that includes a savings account with no minimum deposit, no transaction fees, and a 1.05 percent interest rate that is currently almost one full percentage point above every other big bank. Before there was a 10 million dollar minimum deposit. Long associated with private banking for the rich and privileged — and thought to have one of the wealthiest client bases — Goldman Sachs stands most at risk from one catastrophic incident, said regulators, who are keen to prevent a repeat of 2008's government bailout. GS Bank diversifies their funding sources.