How companies like Google and IBM plan to make money from quantum computing

Quantum computers use the natural world to produce machines with staggeringly powerful processing potential. Quantum computing could also help scientists speed up discoveries in adjacent fields like machine learning and artificial intelligence. Amazon, Google, IBM and Microsoft, plus a host of smaller companies such as Rigetti and D-Wave, are all betting big on quantum. said Martin Reynolds, an analyst with Gartner who covers quantum computing. “So you could see there are some simply astonishing


Quantum computers use the natural world to produce machines with staggeringly powerful processing potential.
Quantum computing could also help scientists speed up discoveries in adjacent fields like machine learning and artificial intelligence.
Amazon, Google, IBM and Microsoft, plus a host of smaller companies such as Rigetti and D-Wave, are all betting big on quantum.
said Martin Reynolds, an analyst with Gartner who covers quantum computing.
“So you could see there are some simply astonishing
How companies like Google and IBM plan to make money from quantum computing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: jeff morganteen
Keywords: news, cnbc, companies, thing, plan, simulate, future, far, ibm, money, companies, quantum, computing, google, technology, computers, big


How companies like Google and IBM plan to make money from quantum computing

Quantum computers use the natural world to produce machines with staggeringly powerful processing potential.

We could use quantum computers to simulate molecules to build new drugs and new materials, and to solve problems plaguing physicists for decades. Wall Street could use them to optimize portfolios, simulate economic forecasts and for complex risk analysis. Quantum computing could also help scientists speed up discoveries in adjacent fields like machine learning and artificial intelligence.

Amazon, Google, IBM and Microsoft, plus a host of smaller companies such as Rigetti and D-Wave, are all betting big on quantum.

“How many of your billions would you give over for an extra 10 years of life?” said Martin Reynolds, an analyst with Gartner who covers quantum computing. “So you could see there are some simply astonishing financial opportunities in quantum computing. This is why there’s so much interest, even though it’s so far down the road.”

But nothing is ever a sure thing. And dealing with the quirky nature of quantum physics creates some big hurdles for this nascent technology. Is quantum truly the next big thing in computing? Or is it destined to become something more like nuclear fusion—destined to always be the technology of the future, never the present?

Watch the video above to learn more about quantum computing and how tech companies hope to use the technology in the far and near future.


Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: jeff morganteen
Keywords: news, cnbc, companies, thing, plan, simulate, future, far, ibm, money, companies, quantum, computing, google, technology, computers, big


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These five companies reporting earnings in the week ahead almost always beat the Street

Of the hundreds of big companies set to report earnings next week, there are five key names that investors should be focused on as these companies almost always top expectations. CNBC crunched the numbers using data from Bespoke Investment Group and found five stocks that nearly always beat Wall Street’s earnings forecasts. Plus, these companies normally trade positive after their surefire earnings beat.


Of the hundreds of big companies set to report earnings next week, there are five key names that investors should be focused on as these companies almost always top expectations.
CNBC crunched the numbers using data from Bespoke Investment Group and found five stocks that nearly always beat Wall Street’s earnings forecasts.
Plus, these companies normally trade positive after their surefire earnings beat.
These five companies reporting earnings in the week ahead almost always beat the Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-19  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, street, trade, wall, companies, beat, surefire, stocks, using, ahead, week, reporting, streets, earnings


These five companies reporting earnings in the week ahead almost always beat the Street

Of the hundreds of big companies set to report earnings next week, there are five key names that investors should be focused on as these companies almost always top expectations.

CNBC crunched the numbers using data from Bespoke Investment Group and found five stocks that nearly always beat Wall Street’s earnings forecasts. Plus, these companies normally trade positive after their surefire earnings beat.


Company: cnbc, Activity: cnbc, Date: 2020-01-19  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, street, trade, wall, companies, beat, surefire, stocks, using, ahead, week, reporting, streets, earnings


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Why companies are willingly paying hackers millions

Why companies are willingly paying hackers millions”Ethical hackers” help companies protect themselves, finding and reporting security vulnerabilities before criminal hackers can break in.


Why companies are willingly paying hackers millions”Ethical hackers” help companies protect themselves, finding and reporting security vulnerabilities before criminal hackers can break in.
Why companies are willingly paying hackers millions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-18
Keywords: news, cnbc, companies, help, paying, reporting, security, protect, willingly, millions, hackers, vulnerabilities, millionsethical, companies


Why companies are willingly paying hackers millions

Why companies are willingly paying hackers millions

“Ethical hackers” help companies protect themselves, finding and reporting security vulnerabilities before criminal hackers can break in.


Company: cnbc, Activity: cnbc, Date: 2020-01-18
Keywords: news, cnbc, companies, help, paying, reporting, security, protect, willingly, millions, hackers, vulnerabilities, millionsethical, companies


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Biden wants to get rid of law that shields companies like Facebook from liability for what their users post

Democratic presidential candidate Joe Biden wants to get rid of the legal protection that has shielded social media companies including Facebook from liability for users’ posts. But revoking the clause in its entirety would have major implications for tech platforms and may still fail to produce some of the desired outcomes. “Section 230 obviously benefits not just Facebook,” Facebook spokesperson Andy Stone told CNBC. Stone also pointed to a Facebook executive’s comments on the subject at a hea


Democratic presidential candidate Joe Biden wants to get rid of the legal protection that has shielded social media companies including Facebook from liability for users’ posts.
But revoking the clause in its entirety would have major implications for tech platforms and may still fail to produce some of the desired outcomes.
“Section 230 obviously benefits not just Facebook,” Facebook spokesperson Andy Stone told CNBC.
Stone also pointed to a Facebook executive’s comments on the subject at a hea
Biden wants to get rid of law that shields companies like Facebook from liability for what their users post Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: lauren feiner
Keywords: news, cnbc, companies, post, wants, comments, interview, shields, companies, york, vice, liability, biden, legal, 230, facebook, rid, law, platforms, tech, users


Biden wants to get rid of law that shields companies like Facebook from liability for what their users post

Democratic presidential candidate Joe Biden wants to get rid of the legal protection that has shielded social media companies including Facebook from liability for users’ posts.

The former vice president’s stance, presented in an interview with The New York Times editorial board, is more extreme than that of other lawmakers who have confronted tech executives about the legal protection from Section 230 of the Communications Decency Act.

“Section 230 should be revoked, immediately should be revoked, number one. For Zuckerberg and other platforms,” Biden said in the interview published Friday.

The bill became law in the mid-1990s to help still-nascent tech firms avoid being bogged down in legal battles. But as tech companies have amassed more power and billions of dollars, many lawmakers across the political spectrum along with Attorney General William Barr, agree that some reforms of the law and its enforcement are likely warranted.

But revoking the clause in its entirety would have major implications for tech platforms and may still fail to produce some of the desired outcomes. Section 230 allows for tech companies to take “good faith” measures to moderate content on their platforms, meaning they can take down content they consider violent, obscene or harassing without fear of legal retribution.

“Section 230 obviously benefits not just Facebook,” Facebook spokesperson Andy Stone told CNBC. “It’s not just foundational to the internet, it’s what allows The New York Times to host reader comments on their websites.”

Stone also pointed to a Facebook executive’s comments on the subject at a hearing on digital deception last week. Monika Bickert, Facebook’s vice president of global policy management told Congress, “Section 230 is an important part of my team being able to do what we do so — yes, it gives us the ability to proactively look for abuse and remove it.”

Biden’s stance on Section 230 will likely be met with similar criticism in Silicon Valley to that lodged at Sen. Josh Hawley, R-Mo., after he introduced legislation in June that would tie the protections of Section 230 to voluntary audits of the tech companies that prove their practices are “politically neutral.” Trade groups representing tech firms including Facebook, Twitter and Google said at the time that Hawley’s bill would make it much more difficult for tech companies to remove reprehensible content.

Biden’s comments on Section 230 are more pronounced than those of his Democratic rivals. Asked by Vox last year how platforms should be held responsible for hate speech or misinformation, Sen. Bernie Sanders, D-Vt., for example, said he would “work with experts and advocates to ensure that these large, profitable corporations are held responsible when dangerous activity occurs on their watch, while protecting the fundamental right of free speech in this country and making sure right-wing groups don’t abuse regulation to advance their agenda.”

Read the full interview at The New York Times.

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WATCH: Why Facebook’s business model is only now coming under fire


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: lauren feiner
Keywords: news, cnbc, companies, post, wants, comments, interview, shields, companies, york, vice, liability, biden, legal, 230, facebook, rid, law, platforms, tech, users


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Earnings will decide whether the market continues to hit new highs after another week of records

Just a few dozen S&P 500 companies report in the four-day trading week, including IBM Tuesday and Intel on Thursday. The S&P 500 gained nearly 2% in the past week, its best week since August. The S&P 500 closed at a record 3,329 Friday and is now up about 3% since the start of the year. The Nasdaq rose 2.3% in the past week, ending at 9,388. If not for the drag from energy companies, profits for S&P 500 companies would have been 1.9% higher.


Just a few dozen S&P 500 companies report in the four-day trading week, including IBM Tuesday and Intel on Thursday.
The S&P 500 gained nearly 2% in the past week, its best week since August.
The S&P 500 closed at a record 3,329 Friday and is now up about 3% since the start of the year.
The Nasdaq rose 2.3% in the past week, ending at 9,388.
If not for the drag from energy companies, profits for S&P 500 companies would have been 1.9% higher.
Earnings will decide whether the market continues to hit new highs after another week of records Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: patti domm
Keywords: news, cnbc, companies, week, decide, hit, earnings, past, highs, continues, 500, market, trade, records, quarter, golub, companies


Earnings will decide whether the market continues to hit new highs after another week of records

With the Chinese trade deal out of the way, earnings could be the biggest driver for stocks in the week ahead, as big tech, financial, consumer and industrial companies report.

So far, the early rush of earnings are beating estimates at a pace of about 70%. Just a few dozen S&P 500 companies report in the four-day trading week, including IBM Tuesday and Intel on Thursday. Johnson & Johnson reports Wednesday; Procter & Gamble is Thursday, and American Express releases results Friday. The stock market is closed Monday for the Martin Luther King holiday.

President Donald Trump travels to Davos, Switzerland for the World Economic Forum, where he speaks Tuesday. With the China trade deal signed this past Wednesday, strategists say they are now watching for any signs of a bigger trade row brewing between the U.S. and Europe.

There are a few economic reports, including existing home sales Wednesday; leading indicators Thursday, and the Markit PMI data for manufacturing and services on Friday.

But it’s earnings, where investors will take the pulse of corporate America, and decide whether forward guidance is justifying the stock market’s record highs and price earnings ratio of more than 18.5. The S&P 500 gained nearly 2% in the past week, its best week since August. The S&P 500 closed at a record 3,329 Friday and is now up about 3% since the start of the year.

The Dow and Nasdaq also ended the week at new highs. The Dow ended up 1.9% for the week, at 29,348. The Nasdaq rose 2.3% in the past week, ending at 9,388.

Jonathan Golub, chief U.S. market strategist at Credit Suisse, said the fourth quarter could be a turning point for earnings, after a poor performance in 2019. So far, earnings are down about 0.8% this quarter, based on actual releases and estimates, according to Refinitiv. If not for the drag from energy companies, profits for S&P 500 companies would have been 1.9% higher.

“2019 was a year of lousy earnings, and the fourth quarter is the end of a lousy year,” said Golub. “I think earnings surprises will be fine, but what the real story here is, it looks like magically the 2020 numbers are going to be much, much stronger than 2019.”

Golub said there are two big themes this earnings season. “The first one is tech-related companies. Many of the mega caps had okay earnings, but their margins were under a lot of pressure and it subtracted earnings growth in 2019. Those trends are supposed to reverse. So what was a negative because of easy comps becomes a positive,” Golub said. “The same thing with the energy sector which was a disaster in terms of earnings growth in 2019.”

He said the market rally can continue in part because investors are not yet on board with the earnings story.

“While everybody is looking at the fourth quarter, I think they’re not really reading the right script, and the script they should be reading was this was the last quarter where tech margins and energy sector headwinds are overwhelming the market,” he said.

The hearings on Trump’s impeachment are so far ignored by markets and will be underway in the Senate. While the market continues to shrug it off, traders are monitoring the situation for any change in tone.

“Will there be new evidence/witnesses at the Senate trial to make it politically significant?,” wrote Deutsche Bank foreign exchange strategist Alan Ruskin. “Let’s not forget that for many voters, the President seems to be the main motivator for voters on both sides of the political spectrum — for and against. This argument runs along the lines that Trump is running against himself/’the anti-Trump’, and, the election will be heavily impacted by which Democrat candidate least impacts the ‘anti-Trump’ vote — a view that some argue tends to support centrists like Biden.”


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: patti domm
Keywords: news, cnbc, companies, week, decide, hit, earnings, past, highs, continues, 500, market, trade, records, quarter, golub, companies


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Execs tell Congress how they’ve been burned by tech giants in a rare public rebuke

Sonos CEO Patrick Spence, PopSockets CEO David Barnett, Basecamp CTO David Heinemeier Hansson and Tile General Counsel Kirsten Daru took the stand. On Friday, executives from four companies aired their grievances about the Big Tech giants to Congress without the protection of a closed door. Like any brand, however, PopSockets is free to choose which retailers it supplies and chose to stop selling directly through Amazon. The witnesses described some of the tactics that could make smaller players


Sonos CEO Patrick Spence, PopSockets CEO David Barnett, Basecamp CTO David Heinemeier Hansson and Tile General Counsel Kirsten Daru took the stand.
On Friday, executives from four companies aired their grievances about the Big Tech giants to Congress without the protection of a closed door.
Like any brand, however, PopSockets is free to choose which retailers it supplies and chose to stop selling directly through Amazon.
The witnesses described some of the tactics that could make smaller players
Execs tell Congress how they’ve been burned by tech giants in a rare public rebuke Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: lauren feiner
Keywords: news, cnbc, companies, giants, congress, amazon, developers, execs, big, spence, tell, rare, public, companies, rebuke, tech, apple, sonos, theyve, app, popsockets, burned, google


Execs tell Congress how they've been burned by tech giants in a rare public rebuke

But witnesses at Friday’s testimony to the House Antitrust Subcommittee at the University of Colorado said they felt they were in a position to speak out despite potential risks to their businesses. Sonos CEO Patrick Spence, PopSockets CEO David Barnett, Basecamp CTO David Heinemeier Hansson and Tile General Counsel Kirsten Daru took the stand.

While criticisms of Facebook , Google , Apple and Amazon are far from uncommon these days among academics and politicians, as well as privately by developers and advertisers, it’s more rare to see these concerns raised publicly by companies that still rely on Big Tech’s services.

On Friday, executives from four companies aired their grievances about the Big Tech giants to Congress without the protection of a closed door.

An Amazon spokesperson said in a statement, “We sought to continue working with Popsockets as a vendor to ensure that we could provide competitive prices, availability, broad selection and fast delivery for those products to our customers. Like any brand, however, PopSockets is free to choose which retailers it supplies and chose to stop selling directly through Amazon. Even so, we’ve continued to work with PopSockets to address our shared concerns about counterfeit, and continue to have a relationship with PopSockets through Merch by Amazon, which enables other sellers to create customized PopSockets for sale.”

The witnesses described some of the tactics that could make smaller players who rely on the large tech firms’ services wary of coming forward. Barnett accused Amazon of what he called “bullying with a smile,” for example. He claimed Amazon executives would call to pressure the company to lower prices on the platform or risk Amazon sourcing PopSocket products from third-party sellers. PopSockets ultimately ended their relationship with Amazon, but Barnett said they continued to have trouble communicating with the company after that about resolving their balance.

“I feel that this is a big enough issue that people need to speak out,” Spence told lawmakers. “We have a responsibility to speak for those that can’t.”

Spence said his company is “in the fortunate position where I think we’re strong enough financially” to speak out, though he said he is still “taking a risk.” Sonos filed suit against Google for patent infringement last week and alleges Amazon behaved similarly but that it does not have the capacity to sue both simultaneously.

Spence said companies like Google and Amazon use their dominance to both subsidize products in new markets they are entering and impose restrictions on third-parties to maintain their dominance. In his opening remarks, Spence accused Google of refusing to let Sonos integrate Google Assistant into its products if it implemented a feature that lets users host multiple voice assistants at the same time. As a result, Spence said, Sonos customers must choose a single voice assistant on their devices through an app (he said Amazon, which lets Sonos users access Alexa, did not place similar restrictions on that feature).

“There’s such a dominant power that exists with these companies that when Google or companies like that are asking for these things, you really, even for a company of our size, feel that you have no choice but to provide them,” Spence said.

A Google spokesperson said in a statement that “Sonos has made misleading statements about our history of working together. Our technology and devices were designed independently. We deny their claims vigorously, and will be defending against them.”

Hansson, the Basecamp CTO, blasted Facebook and Google’s advertising models, focusing in particular on Google’s search advertising, which he called a “shakedown.” Despite working to build a good reputation online for 20 years to show up in the first page of search results, Hansson said, “the only thing that matters is whether you buy the advertisement” at the top of the results.

“For trademarked terms like the name of a business, our policy balances the interest of both users and advertisers,” a Google spokeperson told CNBC is response to Hansson’s statements. “Like other platforms, we allow competitors to bid on trademarked terms because it offers users more choice when they are searching. However, if a trademark owner files a complaint, we will block competitors from using their business name in the actual ad text.”

Facebook declined to comment comment on the hearing.

Daru, of Tile, lodged her complaints against Apple for its restrictions on its App Store and for creating a product similar to Tile’s item-finding technology. Daru said the competition in itself isn’t the problem, but unlike a third-party app like Tile, Apple’s own “Find My” apps ship by default on Apple devices. Daru also said Apple’s new requirements for developers, which it touts as privacy advancements, further entrench its own technology instead.

Competing with Apple is like “playing a soccer game,” said Daru. “You might be the best team in the league, but you’re playing against a team that owns the field, the ball, the stadium and the entire league and they can change the rules of the game … at any time.”

In a statement, Apple said, “In regard to third-party apps, we created the App Store with two goals in mind: that it be a safe and trusted place for customers to discover and download apps, and a great business opportunity for all developers. We continually work with developers and take their feedback on how to help protect user privacy while also providing the tools developers need to make the best app experiences.”

Lawmakers wrapped up the hearing by asking what they could do to alleviate the stress the witnesses have felt from Big Tech firms.

“These dominant companies can infringe the intellectual property and invention of other companies and they do it calculating the fact that if they have to pay down the road, if that’s enforced later on, they’ll pay the fee and by that point the competition will be out of it and they’ll be so dominant that it’s a rounding error at the end of the day,” Spence said. “So swift action on that front and material action is something that I think would help.”

“We don’t have the resources to fight Amazon. We didn’t sue Amazon. We never will sue Amazon,” Barnett said. “We could use some help.”

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Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: lauren feiner
Keywords: news, cnbc, companies, giants, congress, amazon, developers, execs, big, spence, tell, rare, public, companies, rebuke, tech, apple, sonos, theyve, app, popsockets, burned, google


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Trump economic advisor Larry Kudlow says White House is ‘looking at’ changes to global anti-bribery law

Larry Kudlow, director of the U.S. National Economic Council, speaks to members of the media outside the White House in Washington, D.C., U.S., on Monday, Oct. 7, 2019. WASHINGTON — The Trump administration is “looking at” making changes to a decades-old global anti-bribery law, White House economic advisor Larry Kudlow told reporters on Friday. “We are looking at it, and we have heard some complaints from our companies,” Kudlow said, responding to a question about the Foreign Corrupt Practices


Larry Kudlow, director of the U.S. National Economic Council, speaks to members of the media outside the White House in Washington, D.C., U.S., on Monday, Oct. 7, 2019.
WASHINGTON — The Trump administration is “looking at” making changes to a decades-old global anti-bribery law, White House economic advisor Larry Kudlow told reporters on Friday.
“We are looking at it, and we have heard some complaints from our companies,” Kudlow said, responding to a question about the Foreign Corrupt Practices
Trump economic advisor Larry Kudlow says White House is ‘looking at’ changes to global anti-bribery law Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: christina wilkie
Keywords: news, cnbc, companies, looking, house, economic, law, trump, white, larry, global, changes, washington, told, kudlow, companies


Trump economic advisor Larry Kudlow says White House is 'looking at' changes to global anti-bribery law

Larry Kudlow, director of the U.S. National Economic Council, speaks to members of the media outside the White House in Washington, D.C., U.S., on Monday, Oct. 7, 2019.

WASHINGTON — The Trump administration is “looking at” making changes to a decades-old global anti-bribery law, White House economic advisor Larry Kudlow told reporters on Friday.

“We are looking at it, and we have heard some complaints from our companies,” Kudlow said, responding to a question about the Foreign Corrupt Practices Act. The law generally prohibits American companies from paying bribes to secure contracts overseas.

“I don’t want to say anything definitive policy-wise, but we are looking at it,” Kudlow added.

Pressed about the specific changes the White House might try to make to the FCPA, Kudlow declined to offer details but signaled that the administration was working on a “package” of reforms.

“Let me wait until we get a better package,” before addressing specifics, Kudlow said at the White House. A White House spokesman did not respond to follow-up questions from CNBC about what was being considered.

The questions about possible changes to the FCPA were sparked by revelations in a soon-to-be-released book about Trump, which describes an episode in which Trump bitterly complained about the law, which he sees as a hindrance to U.S. businesses competing overseas.

According to Washington Post reporters Phillip Rucker and Carol Leonnig, in 2017 Trump told his then-Secretary of State Rex Tillerson that it was “just so unfair that American companies aren’t allowed to pay bribes to get business overseas.”


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: christina wilkie
Keywords: news, cnbc, companies, looking, house, economic, law, trump, white, larry, global, changes, washington, told, kudlow, companies


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Davos elite back corporate social responsibility, but ‘their words are bigger than their actions’

They will talk about how their companies have tackled societal issues — from diversity to climate change. Issues like climate change are more tangible, due to disasters like the wildfires in Australia. Shareholder advocacy groups like As You Sow are pushing for shareholder votes on issues including climate change and human rights. Muilenburg was a board member of the Business Roundtable until he was ousted as Boeing CEO in December. But the minimum wage debate — like climate change, board divers


They will talk about how their companies have tackled societal issues — from diversity to climate change.
Issues like climate change are more tangible, due to disasters like the wildfires in Australia.
Shareholder advocacy groups like As You Sow are pushing for shareholder votes on issues including climate change and human rights.
Muilenburg was a board member of the Business Roundtable until he was ousted as Boeing CEO in December.
But the minimum wage debate — like climate change, board divers
Davos elite back corporate social responsibility, but ‘their words are bigger than their actions’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: lauren hirsch
Keywords: news, cnbc, companies, business, roundtable, funds, elite, actions, ceo, issues, investors, social, words, corporate, bigger, change, companies, davos, climate, shareholder, responsibility


Davos elite back corporate social responsibility, but 'their words are bigger than their actions'

Klaus Schwab, founder and Executive Chairman of the World Economic Forum (WEF), addresses a news conference ahead of the Davos annual meeting in Cologny near Geneva, Switzerland, January 14, 2020. Denis Balibouse

The world’s most influential executives will soon swarm the World Economic Forum in Davos, Switzerland, where they will embrace the idea that corporations no longer exist simply to funnel profits into the pockets of shareholders. They will talk about how their companies have tackled societal issues — from diversity to climate change. Powerful politicians, potentially including President Donald Trump, will also be at the five-day event, which begins Tuesday, laying out the way they have held companies accountable, all while populist rhetoric remains a heated topic during this year’s campaign for the White House. In the often-snowy Swiss village, stakeholder capitalism — a movement that redefines a company’s purpose from serving only its shareholders to all stakeholders, including customers and communities — will be the dominant theme. It will be the first Davos meeting since the Business Roundtable, a group representing the CEOs of nearly 200 companies, embraced stakeholder capitalism as its new purpose in August. But conversations with corporate advisors, investors and experts paint a more nuanced picture of how corporate America is taking on the issues. It is one in which Congress’ ability to force corporate change is dwarfed by state governments. And the biggest driver of change originates from where it always has — investors. As some investors have shifted their focus to the public good, so have companies. Yet there will be limits to change as long as the largest investors care most about making money. “So far, at most companies, their words are bigger than their actions,” said Erik Gordon, a professor at the University of Michigan’s Ross School of Business. “The other wordy people, politicians in an election year, aren’t as big a force as socially activist stockholders are. Stockholders like endowments and pension funds, who are more interested in stakeholder effects than are stockholders who look solely for returns, are the ones the corporations cannot ignore.” Setting the stage for Davos and corporate America over the past few years is a generation for which social and economic issues have become nearly unavoidable. Issues like climate change are more tangible, due to disasters like the wildfires in Australia. Homelessness is more apparent to young urbanites as the problem swells in cities like Seattle and San Francisco. Income inequality is rising as technology and globalization alter the employment landscape. With that, public pension funds are asking more questions — like whether private equity contributed to the demise of Toys R Us. Shareholder advocacy groups like As You Sow are pushing for shareholder votes on issues including climate change and human rights. The country’s biggest investors have joined in as well. Powerful names like ValueAct, Jana Partners and BlackRock have launched new funds that promote environmental, social and governance causes, known as ESG. The funds espouse the idea that investments that line up with public values are rewarded by the market place. Investing in alternative energy, for example, could be rewarded as countries move toward shifting their power standards.

Larry Fink David Orrell | CNBC

It was with that view that BlackRock CEO Larry Fink announced that the world’s largest money manager will exit investments with a high sustainability-related risk like coal. He attributed the move to “a fundamental reshaping of finance” and warned that climate change is a “defining factor in companies’ long-term prospects.” He also said the group will join the Climate Action 100+ investor coalition, which focuses on tackling greenhouse gas.

Limits and profits

But for funds like BlackRock, profit will always be the driving goal. To that end, there are reasons beyond the public good for ESG funds. As passive investing overtakes active, they offer a way to stand out to the Street. ESG funds may also endear the big investors who back them to proxy advisory agencies like the Institutional Shareholder Services when they agitate for seats on company boards. It is with that caveat that some question how far funds like BlackRock and Vanguard are willing to go. As an example, the Sierra Club’s Michael Brune applauded BlackRock’s announcement, while also noting that the firm voted against every single resolution backed by the Climate Action 100+ investor coalition. And behind the scenes, large funds like BlackRock are less focused on some of the demands that could create the most drastic change — like tying pay to ESG performance — than they are on shareholder return. “When companies have to talk to their shareholders about ESG issues, risk management and culture are among the top topics,” said Bill Anderson, global head of Evercore’s Activism Defense business and Strategic Shareholder Advisory practice. “Despite the heightened focus on stakeholders, most companies provide near-term guidance and compensation continues to focus on short-term total shareholder returns.” Some executives argue that improved shareholder returns can help CEOs benefit society in other ways, like through charitable endeavors. But so long as CEOs’ pay is tied to Wall Street performance, there is room for examples of discord between what benefits wallets and the world. Boeing’s former CEO Dennis Muilenburg, who was fired last month for his handling of the 737 Max crisis, walked away with more than $60 million, despite being denied severance. In 2018, the majority of his compensation was tied to performance-based bonuses linked to short-term incentives, like sales, cash-flow and earnings-per-share and longer-term metrics like its 3-year profit goal. “Yeah, you killed 346 people,” Rep. Peter DeFazio, D-Ore. recently told reporters, arguing that a disproportionate focus on share price “somehow has got to change.” Muilenburg was a board member of the Business Roundtable until he was ousted as Boeing CEO in December. At a press conference earlier that month, then-Business Roundtable Chairman Jamie Dimon, the CEO of J.P. Morgan, scoffed at the notion that there was a disconnect between the Business Roundtable’s stakeholder capitalism and Muilenburg’s board-seat. The Business Roundtable is “not an enforcement group,” Dimon said. “[…] And yes, companies are going to make mistakes and have problems and that’ll never end — truthfully like any institution you’ll ever see on the planet — including the press.”

Disclosure as enforcement

Business Roundtable CEO Joshua Bolten said at the same press conference that “every single one of the CEOs who are members” of the group is already engaged in supporting their customers, employees and communities, as well as shareholders. Its new purpose is a challenge to its CEOs to “do better and more,” he said. From the Business Roundtable’s standpoint, that means engaging in policy debates like its push for a federal increase in the minimum wage. But the minimum wage debate — like climate change, board diversity and privacy — is already being tackled by the states, far ahead of federal regulation. While the federal minimum wage has held steady at $7.25 an hour since 2009, nearly half of states raised their minimums in 2019. In turn, companies are already responding, with everyone from Walmart to Amazon having already announced plans to raise their wages. “I think every CEO of a large company knows that it would be difficult to have big changes at the federal level, because most corporate law is done at the state level,” said Michigan’s Gordon. “It costs nothing for a CEO to throw out a bill proposal. You can’t accuse them of doing anything other than what politicians try to do — you hold hearings — its Kabuki theater.”

A general view shows the congress centre, the venue of the World Economic Forum (WEF) in Davos, Switzerland January 13, 2020. Arnd Wiegmann | Reuters


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: lauren hirsch
Keywords: news, cnbc, companies, business, roundtable, funds, elite, actions, ceo, issues, investors, social, words, corporate, bigger, change, companies, davos, climate, shareholder, responsibility


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How hackers are making millions — legally

The term “hacker” generally brings to mind a lonesome, hooded figure, operating in the dark, stealing our money or personal information. Called “ethical hackers” or “white hat hackers”, these men and women use their skills for good by helping companies protect themselves. They work to find and report security vulnerabilities before criminal hackers can take advantage of the bugs. This has given rise to a new crop of startups, like Bugcrowd, Hackerone and Synack, which work to connect ethical hac


The term “hacker” generally brings to mind a lonesome, hooded figure, operating in the dark, stealing our money or personal information.
Called “ethical hackers” or “white hat hackers”, these men and women use their skills for good by helping companies protect themselves.
They work to find and report security vulnerabilities before criminal hackers can take advantage of the bugs.
This has given rise to a new crop of startups, like Bugcrowd, Hackerone and Synack, which work to connect ethical hac
How hackers are making millions — legally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: katie brigham
Keywords: news, cnbc, companies, given, hacker, legally, operating, work, good, ethical, making, millions, hackers, vulnerabilities, companies, rise


How hackers are making millions — legally

The term “hacker” generally brings to mind a lonesome, hooded figure, operating in the dark, stealing our money or personal information. But the past decade has given us reason to rethink this stereotype.

A new type of hacker is on the rise. Called “ethical hackers” or “white hat hackers”, these men and women use their skills for good by helping companies protect themselves. They work to find and report security vulnerabilities before criminal hackers can take advantage of the bugs.

As it turns out, ethical hacking can actually be much more lucrative than operating illegally. Increasingly, organizations like Google, Goldman Sachs and the Department of Defense are paying hackers for identifying vulnerabilities in their systems, in whats known as a “bug bounty program.”

This has given rise to a new crop of startups, like Bugcrowd, Hackerone and Synack, which work to connect ethical hackers with companies offering bug bounties. And through these platforms, some talented hackers have struck it rich.

Here’s how hackers became the good guys.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: katie brigham
Keywords: news, cnbc, companies, given, hacker, legally, operating, work, good, ethical, making, millions, hackers, vulnerabilities, companies, rise


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Why Microsoft, Google and Apple want you to ditch your password

Even when passwords are not stolen, companies can lose a lot of money trying to reset them. “Generally speaking, a typical employee contacts a help desk somewhere between 6 and 10 times a year on password related issues,” Maxim said. “So if you just do the simple multiplication of six to 10 times, times 50 dollars per call, times number of employees, in your organization, you’re talking significantly hundreds of thousands of dollars or even potentially millions of dollars a year.” In large compa


Even when passwords are not stolen, companies can lose a lot of money trying to reset them.
“Generally speaking, a typical employee contacts a help desk somewhere between 6 and 10 times a year on password related issues,” Maxim said.
“So if you just do the simple multiplication of six to 10 times, times 50 dollars per call, times number of employees, in your organization, you’re talking significantly hundreds of thousands of dollars or even potentially millions of dollars a year.”
In large compa
Why Microsoft, Google and Apple want you to ditch your password Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: magdalena petrova
Keywords: news, cnbc, companies, reset, security, password, times, research, apple, passwords, google, companies, stolen, dollars, ditch, microsoft, maxim


Why Microsoft, Google and Apple want you to ditch your password

Passwords are a very serious and expensive security risk. A report by Verizon looked at 2,013 confirmed data breaches and found that 29% of those breaches involved the use of stolen credentials.

Another study by the Ponemon Institute and IBM Security found that the average cost of a single data breach in the U.S. was more than $8 million. Even when passwords are not stolen, companies can lose a lot of money trying to reset them.

“Our research has shown that the average fully loaded cost of a help desk call to reset a password is anywhere between $40 or $50 per call,” says Merritt Maxim, vice president and research director at Forrester.

“Generally speaking, a typical employee contacts a help desk somewhere between 6 and 10 times a year on password related issues,” Maxim said. “So if you just do the simple multiplication of six to 10 times, times 50 dollars per call, times number of employees, in your organization, you’re talking significantly hundreds of thousands of dollars or even potentially millions of dollars a year.”

In large companies like Microsoft, Apple and Google with upwards of 100,000 employees each, these costs can quickly add up. Watch the video above to find out what these companies are doing to decrease our dependence on passwords, and if we will ever be able to ditch the password for good.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: magdalena petrova
Keywords: news, cnbc, companies, reset, security, password, times, research, apple, passwords, google, companies, stolen, dollars, ditch, microsoft, maxim


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