5/6/2016

Cyber Attack Activist Group Targets Banks

“Anonymous” is the name of an activist group that consists of hackers and cyber attackers. The organization tries to take justice into their own hands. For example, they hacked into ISIS’s computer systems in order to sabotage operations. However, Anonymous has announced it now plans on attacking the global banking computer system. In a video statement posted to YouTube, the notorious group of hacktivists said: "We will not let the banks win, we will be attacking the banks with one of the most massive attacks ever seen in the history of Anonymous." The news comes after hackers successfully disrupted the website of the Greek central bank by using a distributed-denial-of-service (DDoS) cyberattack. This method is frequently deployed by hackers and used to overwhelm a web server with traffic in order to knock it offline. The motivation, according to the hackers responsible, was to protest alleged corruption in the global banking system.

But then again, it is not likely that hackers will have the fortitude to breach the services of PayPal, MasterCard, VISA, NASDAQ, Bank for International Settlements, all central banks, IMF and the London Stock Exchange. The banks are willing to spend a significant amount of capital in order to inhibit hackers. Banks hire the most renowned data security professionals in the world. NYSE’s data security officers are experts. Therefore assuring the safety of the baking system.

Brexit Referendum Causing Consumer/Business Uncertainty

The pound was trading at $1.4450 , down 0.3 percent from a day earlier.

The BOE said the buildup to the June 23 vote is weighing on confidence and investment.

Uncertainty about the EU referendum caused customers to hold back on purchases, exacerbating already-weak demand. Some services companies said clients delayed new contracts because of the forthcoming referendum. In a separate report Thursday, Moody’s said that uncertainty over the referendum had pushed up funding costs for British lenders this year and warned that global investment banks could “progressively downsize their U.K. activities” if Britain quits the EU.

Wildfire In Canada Raises Oil Prices

Oil prices surged on Thursday after a raging wildfire near Canada's oil sands region curbed output that mainly flows to the United States. The size of the fire said to be as large as New York City. As much as a third of Canada's daily crude capacity has been cut and some major pipelines closed after more evacuations were ordered.

Earlier this week, oil lost its almost unbroken upward momentum since April's gain of more 20 percent that gave Brent its best monthly gain in seven years. Over Monday and Tuesday, crude prices fell 6 percent as major producers in and outside OPEC pumped at or near record highs.

Even so, some analysts said the fallout from the Canadian inferno was being underestimated.

At least 640,000 barrels per day (bpd) of capacity was offline, according to Reuters' calculations.

The situation is clearly very serious," said London-based PVM, which notes that of the 4.5 million bpd that Canada produces, 3.4 million goes to the United States.

New Regulations for E-Cigarettes

The FDA announced e-cigarettes will be regulated like traditional cigarettes. The rule broadens the definition of tobacco products to include e-cigarettes, hookahs, pipe tobacco, premium cigars, little cigars and other products. The new rule will not go into effect immediately, since companies will need time to comply.

People between ages 18 and 24 had the highest number of new E-Cig users.

With the new regulations, people under the age of 18 won't be able to buy these products. Currently, not all states forbid sales to minors.

E-cigarettes come in kid-friendly flavors like gummy bear, atomic fireball candy, and cookies and cream.

The new regulations also mean that the government can have a say in what goes into the products.

Until now, there was no law mandating that manufacturers tell you what you are inhaling when you try one of their products. The market has been called a "complete unregulated Wild Wild West."

The new rules will also require companies to register with the FDA and put health warnings on their packages and in their ads. It gives the agency the authority to evaluate the potential health impact of these ingredients on users.

Many small vape shops will be forced to shut down, as they won’t be able to afford the approval process, which could slow down the industry’s once-meteoric growth.

Future of GoPro

GoPro’s earnings met expectations. However, analysts set their benchmark so low that is was nearly impossible for them to disappoint. It saw its revenue drop by 49.5 percent from the same period in 2015, and it swung from a $22 million profit to a $121 million loss.

However, GoPro plans to be successful again by introducing their new drone product, Karma. But management just announced it will be delayed until the winter holiday. It was originally slated to be released in the first half of this year.

Drones represent one new opportunity for GoPro, and 360 cameras are another. The company released the first sample footage from its six camera Omni rig today. This kind of video is expected to grow in popularity along with the rise of virtual reality headsets, which allows users to look around the footage simply by turning their head. It costs $5,000 in total, which is about $1,500 for the frame. If the company brings these products to market before competitors and executes with strategy, then maybe there is a future for GoPro after all.

Self-Driving Electric Taxis.

Gerneral Motors and Lyft have teamed up with plans to establish a fleet of self-driving electric taxis.

This comes after GM recently invested $500 million in Lyft, and acquired a self-driving car technology company called Cruise Automation, in a reported $1 billion deal.

They plan to start testing self-driving electric taxis on public roads within a year.

The program will feature electric Chevy Bolts and "real customers," who will have the chance to opt in or out, but many details haven't been hashed out, a Lyft executive told the Journal.

Many other companies are trying to enter this revolutionary market. Both Ford and Microsoft recently invested in Pivotal, a mobility company driven by software development (aka self-driving cars). The space just keeps getting more crowded.

New Rule to Allow Class Action Suits Against Credit Card Companies

Americans may soon be able to bring class action lawsuits against banks and other financial firms thanks to a new rule proposed by the Consumer Financial Protection Bureau. The new proposals will allow Americans to band together and sue over a range of products such as credit cards, checking and savings accounts, money transfer services, and auto and student loans.

Financial firms have over the years perfected the use of fine print to prohibit consumers from bringing such lawsuits and instead force them into arbitrations, which can be costly for an individual consumer. The rule introduced by CFPB on Thursday would prohibit such mandatory arbitration clauses to be used on financial products.

“Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong,” said Richard Cordray.

Many banks and financial companies avoid accountability by putting arbitration clauses in their contracts that block groups of their customers from suing them. The new proposal seeks comment on whether to ban this contract ‘gotcha’ that effectively denies groups of consumers the right to seek justice and relief for wrongdoing.

The rule will not apply retroactively to existing accounts or products signed up for by consumers prior to its implementation.

Financial institutions came out against the new rule.

“The proposed rule is a wolf in sheep’s clothing,” the US Chamber of Commerce said in a statement. “Now the agency designed to protect consumers is proposing a rule that will end up hurting them.”

Critics of the proposed rule argue that instead of benefiting consumers, it would result in profits for class action lawyers and stretch out resolution of consumer disputes. In a letter to the CFPB, the Chamber of Commerce described arbitration as “cheaper, faster and more effective at delivering relief to consumers”.

Class action lawsuits will benefit consumers who would not usually pursue legal action to resolve a small-dollar dispute, CFPB noted in its statement.

LinkedIn Buys Startup Run Hop

LinkedIn acquired Run Hop, a small startup specializing in online content distribution. LinkedIn wants to accelerate its efforts to make users’ feeds more engaging.

A spokesman described the move as an acqui-hire — Silicon Valley slang for an acquisition that targets talent rather than technology.

LinkedIn wanted Run Hop’s co-founders’ talent and expertise in content. Their knowledge and capabilities can help accelerate the execution of their content road map.

Run Hop, founded in 2014 and based in San Francisco, developed services designed to show users articles, videos and other content tailored to their interests.

Hedge Funds on the Decline

Investors are withdrawing their money from hedge funds at a rapid pace. The reason is that Warren Buffett warned investors in April to stay away from hedge funds because of their lousy returns and high fees. After a rocky start to 2016, the S&P 500 still managed to advance 1.3% in the first quarter. Meanwhile, hedge funds lost an average of 0.6%.

In the past two quarters, investors have pulled more money from hedge funds than they put in—almost $17 billion. That’s the worst outflow since 2009.

On the bright side, hedge funds still command $2.86 trillion in assets, about $1 trillion more than in 2007.