Credit Suisse to start charging wealthy clients for cash deposits

Credit Suisse will start charging wealthy clients with large cash deposits in Swiss francs, the latest Swiss bank to pass on negative interest rates to customers. Individual and business customers will be charged a rate of -0.75% on cash balances above 2 million Swiss francs ($2.02 million), Switzerland’s second biggest lender said. “As other banks have been doing for some time, Credit Suisse is introducing negative interest rates for clients with very high Swiss franc cash holdings,” Credit Sui


Credit Suisse will start charging wealthy clients with large cash deposits in Swiss francs, the latest Swiss bank to pass on negative interest rates to customers.
Individual and business customers will be charged a rate of -0.75% on cash balances above 2 million Swiss francs ($2.02 million), Switzerland’s second biggest lender said.
“As other banks have been doing for some time, Credit Suisse is introducing negative interest rates for clients with very high Swiss franc cash holdings,” Credit Sui
Credit Suisse to start charging wealthy clients for cash deposits Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-18
Keywords: news, cnbc, companies, deposits, clients, rate, million, balances, start, credit, negative, swiss, charging, interest, customers, cash, bank, wealthy, suisse, francs


Credit Suisse to start charging wealthy clients for cash deposits

Credit Suisse will start charging wealthy clients with large cash deposits in Swiss francs, the latest Swiss bank to pass on negative interest rates to customers.

Individual and business customers will be charged a rate of -0.75% on cash balances above 2 million Swiss francs ($2.02 million), Switzerland’s second biggest lender said. Balances of less than 2 million francs will be unaffected.

A rate of -0.85% will be imposed on business customers with balances above 10 million francs.

The new rules take effect from Jan. 1 for individual customers and November 15 for business customers.

Credit Suisse’s cross-town rival UBS in July said it would charge a -0.75% rate on deposits above 2 million francs, while Postfinance charges fees to private customers with balances above 500,000 francs.

Several banks in Switzerland, including private bank Julius Baer, and the euro zone also pass on the cost of negative official rates to corporate depositors, though most large players have refrained from doing so with individual clients.

“As other banks have been doing for some time, Credit Suisse is introducing negative interest rates for clients with very high Swiss franc cash holdings,” Credit Suisse said on Friday.

“The reason for this is the persistent negative interest rate environment.”

The Swiss National Bank (SNB) has charged a negative rate of -0.75% since January 2015 on deposits parked with the central bank by commercial banks overnight, one of the tools the SNB uses to deter investor appetite for the Swiss franc.

Many economists expect the SNB to take the interest rate lower next year to prevent further strengthening of the safe-haven currency, which could damage Switzerland’s export-reliant economy.


Company: cnbc, Activity: cnbc, Date: 2019-10-18
Keywords: news, cnbc, companies, deposits, clients, rate, million, balances, start, credit, negative, swiss, charging, interest, customers, cash, bank, wealthy, suisse, francs


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Tesla quietly changed its return policy and added a non-refundable $100 order fee

Tesla has ditched refundable $1,000 reservation fees and $2,500 order deposits, which were required to order its cars previously, and instead will now charge a $100 non-refundable order fee, according to updated language on its web site. The order fee means that Tesla will make money every time a person places an order, even if they decide not to move forward with their purchase — no matter why they decided to bail. Tesla is also banning customers who return one of their electric vehicles from


Tesla has ditched refundable $1,000 reservation fees and $2,500 order deposits, which were required to order its cars previously, and instead will now charge a $100 non-refundable order fee, according to updated language on its web site.
The order fee means that Tesla will make money every time a person places an order, even if they decide not to move forward with their purchase — no matter why they decided to bail.
Tesla is also banning customers who return one of their electric vehicles from
Tesla quietly changed its return policy and added a non-refundable $100 order fee Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: lora kolodny
Keywords: news, cnbc, companies, changed, fee, company, prices, return, tweaks, 100, policy, retail, automotive, customers, quietly, added, order, tesla, nonrefundable


Tesla quietly changed its return policy and added a non-refundable $100 order fee

Tesla has ditched refundable $1,000 reservation fees and $2,500 order deposits, which were required to order its cars previously, and instead will now charge a $100 non-refundable order fee, according to updated language on its web site.

The order fee means that Tesla will make money every time a person places an order, even if they decide not to move forward with their purchase — no matter why they decided to bail.

Tesla is also banning customers who return one of their electric vehicles from buying the same trim for a full year. After making a return, a customer will have to either go for an upgrade, a downgrade, or a different model — or they can walk away.

These and other recent price tweaks could help Tesla chase profitability, which the company has promised to achieve in the second half of 2019. But the changes could also drive away prospects who don’t want to pay the higher prices, or cause some customers to delay purchases while they wait for the next batch of tweaks and incentives.

Frost & Sullivan’s Director of Aftersales, Retail & New Mobility Research, Kumar Saha, believes the company has little to lose in changing its prices and policies in this manner.

He explained, “Tesla is building its brand and its manufacturing capabilities in front of everybody’s eyes. They also want to torch the existing automotive retail practice and build it up in [CEO Elon] Musk’s image. Musk loves to go ahead with anything that’s disruptive and goes against the current of automotive retail. Since they are not beholden to dealerships and do not have to adhere to franchise laws like other automakers — there’s no reason why they have to follow a traditional path, either.”


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: lora kolodny
Keywords: news, cnbc, companies, changed, fee, company, prices, return, tweaks, 100, policy, retail, automotive, customers, quietly, added, order, tesla, nonrefundable


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Mobile bank Chime goes dark for millions of customers as it seeks $5 billion valuation

Card transactions and ATM withdrawals have since been restored, and employer deposits are posting, Chime said Thursday in a statement. But the main touchpoint for Chime’s 5 million users – its mobile app and website – is still down after more than 24 hours. “I completely acknowledge the fact that we feel like we let” users down, Chime CEO Chris Britt said in a telephone interview. Chime has been experiencing torrid growth lately, going from 1 million users in mid-2018 to more than 5 million this


Card transactions and ATM withdrawals have since been restored, and employer deposits are posting, Chime said Thursday in a statement.
But the main touchpoint for Chime’s 5 million users – its mobile app and website – is still down after more than 24 hours.
“I completely acknowledge the fact that we feel like we let” users down, Chime CEO Chris Britt said in a telephone interview.
Chime has been experiencing torrid growth lately, going from 1 million users in mid-2018 to more than 5 million this
Mobile bank Chime goes dark for millions of customers as it seeks $5 billion valuation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: hugh son kate rooney, hugh son, kate rooney
Keywords: news, cnbc, companies, banks, fintech, bank, outages, seeks, users, goes, valuation, billion, mobile, dark, chime, million, customers, millions, outage, card, galileo


Mobile bank Chime goes dark for millions of customers as it seeks $5 billion valuation

Chris Britt, CEO, Chime Source: Chime

Chime, the leading branchless bank in the U.S., is in the midst of a service outage that has left millions of customers without access to their accounts. Issues cropped up Wednesday, leaving users stranded at restaurants, parking garages and gas stations, unable to use their debit cards or pay their bills, according to interviews and complaints posted to the bank’s Twitter account. Card transactions and ATM withdrawals have since been restored, and employer deposits are posting, Chime said Thursday in a statement. But the main touchpoint for Chime’s 5 million users – its mobile app and website – is still down after more than 24 hours. “I completely acknowledge the fact that we feel like we let” users down, Chime CEO Chris Britt said in a telephone interview. “One of our core values is being member obsessed. Our customers love being connected, they want to know what their balances are in real time. And when people don’t have access to the app, we understand how incredibly frustrating that is.”

The outage, reportedly Chime’s third since July, comes at a sensitive time for the San Francisco start-up. Chime has been experiencing torrid growth lately, going from 1 million users in mid-2018 to more than 5 million this year. That has put the firm in the vanguard of an industry that is beginning to take off in the U.S. after the rise of so-called challenger banks in the U.K. and Europe. Chime was in the process of raising new funding from investors at a valuation of at least $5 billion, Axios reported earlier this month. Taking advantage of frustration among bank customers, it has lured users with the promise of zero fees, a two-day advance on paychecks and a seamless experience. But the thesis of Chime and other startups has been that physical branches were an unnecessary relic of the days when banks gave customers free toasters with new checking accounts. Now, customers are beginning to question whether that thesis rings true anymore. “I can’t access anything; if I wanted to transfer money out of my savings account, how am I supposed to do that?” said Bruce Banko, who works in customer support in St. Petersburg, Florida. “I tried calling them but I couldn’t get through.” Banko sent this screenshot of his Chime mobile app: It’s unclear if the outage will impact Chime’s valuation, and Britt declined to comment on anything to do with his bank’s fundraising effort. The outage was caused by an issue with the database of payment processor Galileo, according to people with knowledge of the matter. The Salt Lake City, Utah-based software company said it began experiencing an “operational incident” on Tuesday affecting its ability to “support transactions for a small number of our clients and their customers.” “We are actively working to restore full mobile application functionality, which is currently unavailable or slow to respond,” Galileo said in a statement. “We are committed to actively resolving the situation and returning to normal operations as quickly as possible.” Galileo announced a $77 million funding round on Thursday, led by Accel. The company connects banks to credit card processors through APIs, and counts Robinhood, Monzo, Revolut, Varo and TransferWise as customers.

Hardest hit

While Galileo serves a constellation of fintech firms, it appears that Chime has been impacted the most. That calls into question the robustness of the firm’s technology stack, or perhaps its reliance on vendors. Galileo customer Revolut said that “no services were affected”. Varo, another client, said it “experienced a minor disruption in processing” but that these issues are now mostly resolved. Monzo and Transferwise did not immediately respond to CNBC’s request for comment. Many challenger banks lean on third parties to connect to a payment network. It reduces the complexity of integrating directly with a company like Visa or Mastercard. But that can come with issues around downtime and outages. “If this third party goes down, then to the user of the app, in this case Chime, the card no longer works,” said Simon Taylor, head of venture at fintech consulting group 11FS. “As companies like Chime hit scale we’re likely to see these outages become more common.” Service outages were especially common two years ago in the U.K., where challenger banks like Monzo and Revolut gained popularity after the financial crisis. Those outages eventually caused fintech companies to take their payment processing in house, according to Taylor. Chime and many of its digital banking peers partner with FDIC-insured banks instead of getting a banking license themselves. It’s a popular set up for fintech companies: The banks handle the federally regulated side while start-ups focus on their users’ experience. Chime works with Bancorp Bank, and earns revenue from debit card transaction fees paid by merchants.

‘We feel horrible’


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: hugh son kate rooney, hugh son, kate rooney
Keywords: news, cnbc, companies, banks, fintech, bank, outages, seeks, users, goes, valuation, billion, mobile, dark, chime, million, customers, millions, outage, card, galileo


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Here’s how Abercrombie & Fitch ditched its past to try to bring back customers

Sister brands Abercrombie & Fitch and Hollister were the go-to shops for teens in early 2000s. Already half of all Hollister stores and 10% of Abercrombie’s stores have been remodeled. In Piper Jaffray’s biannual survey of teenage shoppers, the popularity of its key Hollister brand has been steadily rising. But in the fiscal first quarter of 2019, Hollister reported same-store sales growth of 2%. In the second quarter, same-store sales growth at both its Abercrombie and Hollister brands was flat


Sister brands Abercrombie & Fitch and Hollister were the go-to shops for teens in early 2000s.
Already half of all Hollister stores and 10% of Abercrombie’s stores have been remodeled.
In Piper Jaffray’s biannual survey of teenage shoppers, the popularity of its key Hollister brand has been steadily rising.
But in the fiscal first quarter of 2019, Hollister reported same-store sales growth of 2%.
In the second quarter, same-store sales growth at both its Abercrombie and Hollister brands was flat
Here’s how Abercrombie & Fitch ditched its past to try to bring back customers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: jasmine wu
Keywords: news, cnbc, companies, heres, bring, growth, horowitz, brands, customers, investors, stores, hollister, company, try, brand, fitch, ditched, sales, abercrombie, past


Here's how Abercrombie & Fitch ditched its past to try to bring back customers

Crafting a brand is hard work. But harder still is reimaging it.

Sister brands Abercrombie & Fitch and Hollister were the go-to shops for teens in early 2000s. But as Abercrombie cultivated its rebellious image with half-naked models, controversies piled up, and its popularity fell.

By late 2013, activist investors arrived on the scene and pushed for the ouster of CEO Mike Jeffries. He had been hailed for orchestrating its success, but now as sales declined, some blamed him for being out of touch with shifts in consumer tastes. By December 2014, Jeffries retired.

After his departure, Abercrombie began to transform its image and ethos. Instead of excluding those who didn’t fit Abercrombie’s style, the company adopted a more inclusive attitude.

“We are a very different company than we used to be,” Fran Horowitz, who was named CEO in 2017, said in an interview. “We are a much more inclusive company, we are closer to the customer, we’re responding to the customer wants and not what we want them to want.”

In April 2018, Horowitz laid out a four-prong vision: redesigned stores that are open; a more responsive supply chain; a seamless shopping experience online and off; and more targeted marketing spending, including an improved loyalty program. If you haven’t been paying attention, the company might be unrecognizable.

Already half of all Hollister stores and 10% of Abercrombie’s stores have been remodeled. Its supply chain is better able to respond to shifts in shopper tastes and its loyalty program now has 30 million members, up from 14 million in the year prior. The company began allowing Abercrombie and Hollister customers to pay with Venmo in August 2018, and the brands recently started offering checkout on Instagram — all in the name of making it easier for customers to shop its stores.

There are signs that consumers are responding well. In Piper Jaffray’s biannual survey of teenage shoppers, the popularity of its key Hollister brand has been steadily rising. It ranked fourth among all clothing brands in the most recent poll, released earlier this month.

But in the fiscal first quarter of 2019, Hollister reported same-store sales growth of 2%. That missed analyst expectations of a 3.3% growth, sparking a sell-off of A&F shares and led investors to worry that momentum at the company’s crown jewel was slowing. In the second quarter, same-store sales growth at both its Abercrombie and Hollister brands was flat.

The holiday season may prove to be a pivotal point. If sales at Hollister continue to slow, investors might double down on the belief that the brand is losing steam. If sales accelerate, however, that may indicate Horowitz’s initiatives are winning over a new generation of shoppers.

As of this month, Abercrombie’s stock has grown 26% since Horowitz took over in February 2017. But it had fallen around 28% this year as of early October.


Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: jasmine wu
Keywords: news, cnbc, companies, heres, bring, growth, horowitz, brands, customers, investors, stores, hollister, company, try, brand, fitch, ditched, sales, abercrombie, past


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EU tells Broadcom to stop certain business deals in unusual move

Broadcom has been ordered to stop applying certain exclusivity deals it has with six of its customers, amid an antitrust investigation carried out by the European Union. The European Commission opened an in-depth investigation into the U.S. company in June. “We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation. We, therefore, ordered Broadcom to immediately stop its conduct,” Vestager added. We do not believe that these provi


Broadcom has been ordered to stop applying certain exclusivity deals it has with six of its customers, amid an antitrust investigation carried out by the European Union.
The European Commission opened an in-depth investigation into the U.S. company in June.
“We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation.
We, therefore, ordered Broadcom to immediately stop its conduct,” Vestager added.
We do not believe that these provi
EU tells Broadcom to stop certain business deals in unusual move Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: silvia amaro
Keywords: news, cnbc, companies, commission, provisions, spokesperson, investigation, stop, european, unusual, broadcom, certain, vestager, supplier, business, customers, deals, tells


EU tells Broadcom to stop certain business deals in unusual move

Broadcom Corp. signage is displayed outside of the company’s headquarters in Irvine, California.

Broadcom has been ordered to stop applying certain exclusivity deals it has with six of its customers, amid an antitrust investigation carried out by the European Union.

The Brussels-based institution believes that part of Broadcom’s business could be creating “serious and irreparable harm to competition.”

The European Commission opened an in-depth investigation into the U.S. company in June. As part of this investigation, the Commission announced Wednesday that it’s imposing interim measures to prevent any likely “harm” to competition, for three years. Broadcom must comply with these measures within 30 days from Wednesday.

“We have strong indications that Broadcom, the world’s leading supplier of chipsets used for TV set-top boxes and modems, is engaging in anti-competitive practices,” Margrethe Vestager, the EU’s competition chief, said in a statement.

“We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation. We, therefore, ordered Broadcom to immediately stop its conduct,” Vestager added.

Broadcom, which is a major supplier to Apple, can choose to appeal to Wednesday’s decision. Khanh Lam, spokesperson for Broadcom told CNBC via email: “Broadcom’s contracts with the customers that the European Commission characterizes as exclusivity-inducing remain in force, other than the provisions at issue, and we intend to continue to support these customers going forward. We do not believe that these provisions have a meaningful effect on whether the customers choose to purchase Broadcom products.”

The same spokesperson added: “We intend to appeal the Commission’s decision to the European Courts and in the meantime comply with the Commission’s order.”

Broadcom shares closed at 290.32 on Tuesday, up by about 3% on the day. The stock is about 14% higher over the last 12 months.


Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: silvia amaro
Keywords: news, cnbc, companies, commission, provisions, spokesperson, investigation, stop, european, unusual, broadcom, certain, vestager, supplier, business, customers, deals, tells


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‘Shark Tank’: Why Mark Cuban invested $600,000 into a business that turns human ashes into diamonds

Billionaire Mark Cuban is known for his tech investments — but on Sunday’s “Shark Tank,” Cuban diversified in a unique way. Cuban invested six figures in Eterneva, a business that turns human or animal ashes or hair into diamonds. “What we do is grow real diamonds from the carbon in someone’s ashes,” Garrett Ozar, who co-founded the company with Adelle Archer, said during the episode. According to Archer and Ozar, customers receive a “welcome kit,” which includes a small container for a half-cup


Billionaire Mark Cuban is known for his tech investments — but on Sunday’s “Shark Tank,” Cuban diversified in a unique way. Cuban invested six figures in Eterneva, a business that turns human or animal ashes or hair into diamonds. “What we do is grow real diamonds from the carbon in someone’s ashes,” Garrett Ozar, who co-founded the company with Adelle Archer, said during the episode. According to Archer and Ozar, customers receive a “welcome kit,” which includes a small container for a half-cup
‘Shark Tank’: Why Mark Cuban invested $600,000 into a business that turns human ashes into diamonds Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: taylor locke
Keywords: news, cnbc, companies, business, human, invested, ashes, shark, archer, ozar, hair, turns, diamonds, cuban, tank, mark, customers, carbon, high, eterneva


'Shark Tank': Why Mark Cuban invested $600,000 into a business that turns human ashes into diamonds

Billionaire Mark Cuban is known for his tech investments — but on Sunday’s “Shark Tank,” Cuban diversified in a unique way.

Cuban invested six figures in Eterneva, a business that turns human or animal ashes or hair into diamonds.

“What we do is grow real diamonds from the carbon in someone’s ashes,” Garrett Ozar, who co-founded the company with Adelle Archer, said during the episode. “But really, we’re in the business of celebrating remarkable people. Our diamonds give you something positive to look forward to.”

According to Archer and Ozar, customers receive a “welcome kit,” which includes a small container for a half-cup of ashes or hair. Customers then send that back to Eterneva. Customers also pick the diamond of their liking.

Then “we extract carbon from a half a cup of ashes or hair,” Ozar said during the episode. “Once we have carbon, we then use high pressure, high temperature to grow a diamond.”

The prices of these diamonds range from $3,000 to $20,000, according to Archer. She said the average order value is $8,000, and customers “pay upfront, in full.”

“That’s smart,” Cuban said.

It takes 10 months to make the diamond, and it costs Eterneva between $3,000 to $5,000 to make.


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: taylor locke
Keywords: news, cnbc, companies, business, human, invested, ashes, shark, archer, ozar, hair, turns, diamonds, cuban, tank, mark, customers, carbon, high, eterneva


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How Kohl’s is trying to keep its stores fresh ahead of the holidays

Kohl’s says it will swap out the six brands featured in the “Curated by Kohl’s” spaces on a quarterly basis. JERSEY CITY, N.J. — Kohl’s stores are getting a bit of a refresh and are being infused with new brands ahead of this holiday season. At a Kohl’s store here, the retailer has rolled out a space called “Curated by Kohl’s,” to be heading to 50 of Kohl’s roughly 1,100 locations nationwide. In its latest reported quarter, sales at Kohl’s stores open for at least 12 months were down 2.9%, worse


Kohl’s says it will swap out the six brands featured in the “Curated by Kohl’s” spaces on a quarterly basis. JERSEY CITY, N.J. — Kohl’s stores are getting a bit of a refresh and are being infused with new brands ahead of this holiday season. At a Kohl’s store here, the retailer has rolled out a space called “Curated by Kohl’s,” to be heading to 50 of Kohl’s roughly 1,100 locations nationwide. In its latest reported quarter, sales at Kohl’s stores open for at least 12 months were down 2.9%, worse
How Kohl’s is trying to keep its stores fresh ahead of the holidays Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: lauren thomas
Keywords: news, cnbc, companies, holidays, stores, fresh, sales, kohls, brands, customers, testing, ahead, spaces, gass, things, company, trying


How Kohl's is trying to keep its stores fresh ahead of the holidays

Kohl’s says it will swap out the six brands featured in the “Curated by Kohl’s” spaces on a quarterly basis.

JERSEY CITY, N.J. — Kohl’s stores are getting a bit of a refresh and are being infused with new brands ahead of this holiday season.

At a Kohl’s store here, the retailer has rolled out a space called “Curated by Kohl’s,” to be heading to 50 of Kohl’s roughly 1,100 locations nationwide. It features six brands, including lingerie maker Adore Me and card marker Lovepop. And in these spaces, Kohl’s is working with Facebook — and its massive database of brands that advertise on the social media platform and Instagram — to help market the brands and choose what might rotate in next.

Also in the Jersey City store is a new “Outfit Bar” setup, spanning about 600 square feet, where Kohl’s is testing pulling together outfits on mannequins to try to encourage younger female customers to buy entire looks, shoes and accessories. Again, it’s currently testing this in 50 locations across the chain.

Kohl’s also just this month launched additional private labels, including one designed by HGTV’s ‘Property Brothers’ stars Drew and Jonathan Scott, to fill spaces in stores where the company believes it can sell more — and at better margins by creating those brands in house.

“We feel strongly that we want to become more known for discovery … it’s more opportune to launch new brands,” said Kohl’s Chief Merchandising Officer Doug Howe during an interview here. “It’s important for our new customers, but we are doing it for our existing customers as well … to be able to have this pipeline of newness.”

“Newness” is exactly how Kohl’s describes what it’s investing in today. CEO Michelle Gass used the word 11 times on the retailer’s earnings conference call in August.

And the hope would be these “newness” initiatives can give Kohl’s a needed boost to sales. The company hasn’t been immune to the trend of more shoppers turning directly to their favorite brands to buy things, bypassing retailers. Kohl’s knows it has to give people a reason to shop there.

In its latest reported quarter, sales at Kohl’s stores open for at least 12 months were down 2.9%, worse than analysts were expecting. Quarterly sales of $4.17 billion also missed Street expectations.

Kohl’s shares have fallen about 23% this year, bringing the company’s market cap to about $8.1 billion.

“Stores remain critical to our success and we continue to invest to elevate the overall experience,” Gass said during a call with analysts. “A big part of how customers are experiencing a modernized Kohl’s is through the introduction of new brands and merchandising concept, and we’ll continue to drive that forward.”

The company admitted its home business under-performed during the latest quarter, dragging down overall results. But Gass said Kohl’s expects that the “newness” coming to stores will help turn things around.


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: lauren thomas
Keywords: news, cnbc, companies, holidays, stores, fresh, sales, kohls, brands, customers, testing, ahead, spaces, gass, things, company, trying


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Fidelity says it won’t pay for zero fees by selling your trade executions to the highest bidder

“We do not take payment-for-order-flow on equity orders,” said Murphy, president of Fidelity’s personal investing business. The industry average is $2.89, so we gave $635 million back to our customers,” Murphy claimed. While it is not the biggest income source for online brokers, payment-for-order-flow is an increasing revenue stream. Schwab made $139 million from selling its customers’ orders in 2018, up 22% from the previous year, according to regulatory filings analyzed by Reuters. Boston-bas


“We do not take payment-for-order-flow on equity orders,” said Murphy, president of Fidelity’s personal investing business. The industry average is $2.89, so we gave $635 million back to our customers,” Murphy claimed. While it is not the biggest income source for online brokers, payment-for-order-flow is an increasing revenue stream. Schwab made $139 million from selling its customers’ orders in 2018, up 22% from the previous year, according to regulatory filings analyzed by Reuters. Boston-bas
Fidelity says it won’t pay for zero fees by selling your trade executions to the highest bidder Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: kevin stankiewicz, jessica bursztynsky
Keywords: news, cnbc, companies, selling, pay, million, trying, bidder, online, brokers, wont, executions, trade, trades, murphy, highest, paymentfororderflow, zero, fees, orders, customers, fidelity


Fidelity says it won't pay for zero fees by selling your trade executions to the highest bidder

Fidelity Investments has joined its rivals by offering zero-commission online trades, but it’s trying to differentiate itself by not selling the right to execute trades to third-party firms, brokerage executive Kathleen Murphy told CNBC on Friday.

“We do not take payment-for-order-flow on equity orders,” said Murphy, president of Fidelity’s personal investing business. “Many competitors do to the tune of hundreds of millions of dollars.” She mentioned no names.

Payment-for-order-flow refers to how market makers, like Citadel Securities or Virtu Financial, pay for the first crack at executing a stock order.

The practice has drawn scrutiny from regulators globally because it creates an incentive for brokers to send orders to whoever pays the most, rather than the place that might get the best outcome for customers.

In 2016, the Securities and Exchange Commission raised questions about the arrangement potentially creating “conflicts of interest for broker-dealers handling customer orders.” Payment-for-order-flow is banned in Canada.

Murphy argued that Fidelity, by forgoing this process, saves its clients more money than its competitors.

“We gave $17.20 on a 1,000 share order back to our customers, on average. The industry average is $2.89, so we gave $635 million back to our customers,” Murphy claimed.

Fidelity’s decision on Thursday to drop trading commissions put it in the same boat as Charles Schwab, E-Trade, TD Ameritrade and Interactive Brokers, all which recently announced similar moves. While Fidelity isn’t public, the other companies have seen their shares fall as the revenue drivers for the brokerages became even less clear.

While it is not the biggest income source for online brokers, payment-for-order-flow is an increasing revenue stream. Schwab made $139 million from selling its customers’ orders in 2018, up 22% from the previous year, according to regulatory filings analyzed by Reuters. TD Ameritrade was paid $458 million for customer orders in its last fiscal year, up from $320 million the year before.

Boston-based Fidelity, which manages $2.8 trillion in assets, used to charge $4.95 for online stock trades. The zero commissions took effect Thursday for individual investors. They’ll be available Nov. 4 for registered advisors.

Murphy said she’s not worried about Fidelity’s margins taking a huge hit. “We are a private company, so we make sure our margins never get too high frankly because we’re always trying to give back value back to the customers.”

Brokers generally make most of their money through interest income on their clients’ deposits.

— Reuters and The Associated Press contributed to this article.


Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: kevin stankiewicz, jessica bursztynsky
Keywords: news, cnbc, companies, selling, pay, million, trying, bidder, online, brokers, wont, executions, trade, trades, murphy, highest, paymentfororderflow, zero, fees, orders, customers, fidelity


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California AG tells businesses like Facebook and Google how they must comply with the state’s new landmark privacy law

California Attorney General Xavier Becerra outlined for the first time Thursday how businesses will need to comply with the state’s new landmark privacy law. Businesses are instructed not to disclose personal information about the customer making a request if they cannot verify their identity. The rules also explain how a business can value its customer data, such as by determining the profit created by the business from collecting or selling customers’ data. Federal lawmakers are looking to the


California Attorney General Xavier Becerra outlined for the first time Thursday how businesses will need to comply with the state’s new landmark privacy law. Businesses are instructed not to disclose personal information about the customer making a request if they cannot verify their identity. The rules also explain how a business can value its customer data, such as by determining the profit created by the business from collecting or selling customers’ data. Federal lawmakers are looking to the
California AG tells businesses like Facebook and Google how they must comply with the state’s new landmark privacy law Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: lauren feiner
Keywords: news, cnbc, companies, privacy, law, tells, google, data, california, information, landmark, rules, request, national, companies, facebook, businesses, states, customer, customers, comply


California AG tells businesses like Facebook and Google how they must comply with the state's new landmark privacy law

California Attorney General Xavier Becerra outlined for the first time Thursday how businesses will need to comply with the state’s new landmark privacy law.

The legislation, which will impact tech giants like Facebook and Google all the way down to some small businesses, will go into effect on Jan. 1, 2020. An economic impact assessment prepared for the AG’s office found the law could cost companies a total of up to $55 billion in initial compliance costs. With Thursday’s announcement, businesses now have a guideline for what they have to do to become complaint, pending any revisions after a public comment period that closes Dec. 6 at 5 p.m. Pacific Time. According to the law, the attorney general’s office can begin enforcement six months after the final regulations are in place, or by July 1, 2020 the latest.

“Until now, no one has attempted to do anything like this,” Becerra said at a press conference announcing the draft regulations. “But we are at a crossroads. Americans should not have to give up their digital privacy to live and thrive in this digital age.”

The draft rules guide businesses on several key areas of the law. The rules explain how businesses should notify consumers of their rights under CCPA, how they should handle consumer requests about data, including from minors, and verify those requests. It also advises on how to avoid discriminating against customers who don’t agree to allow their data to be collected or sold.

Under the draft regulations, businesses must confirm they received a request to know or delete their data within 10 days of receiving the request and inform the customer of how they will handle it. The business must respond to the request within 45 days, unless it provides a reason to the customer for taking an additional 45 days.

Businesses are instructed not to disclose personal information about the customer making a request if they cannot verify their identity. The regulations mandate businesses consider how sensitive the information could be and how much harm it could cause in the wrong hands when verifying a customer’s identity. Businesses should not disclose certain types of information, like a consumer’s Social Security number or bank account information, the rules say, even if requested.

When customers request their data be deleted, the option to delete all information must be “more prominently presented” than options to delete only part of the data. When they choose to opt-out of the sale of their personal information, businesses have up to 15 days to act and up to 90 days to notify third parties to whom it’s sold the user’s info and notify the customer when it’s completed.

The rules present a number of ways companies could verify parental consent of a child under 13. These include having a parent or guardian call a trained person to provide consent or checking the parent or guardian’s ID.

Finally, the rules describe how businesses should avoid discriminating against customers who exercise their rights under CCPA. Businesses may not provide different prices or financial incentives to customers based on their choice to opt out of data collection or delete their data, unless the price difference “is reasonably related to the value of the consumer’s data.” The rules also explain how a business can value its customer data, such as by determining the profit created by the business from collecting or selling customers’ data.

The law will apply to a large swath of businesses that deal with customer data, though the compliance costs are expected to vary depending on the size of the companies. Companies making over $25 million in gross annual revenue will have to comply with the law and researchers who compiled the economic impact assessment estimated as many as 75% of California businesses earnings less than $25 million in revenue would be impacted. The law will also apply to businesses in the state that derive at least half of their annual revenue from selling customers’ personal information; or that buy, sell or share personal information from at least 50,000 consumers, households or devices.

Federal lawmakers are looking to the fate of the CCPA as a guide as they consider a national privacy law. Researchers noted that California businesses could benefit from having a head start on compliance should a national law go into effect. So far, however, a national bill does not seem imminent.

Tech companies would likely prefer a national standard over state laws to lower the burden of complying with different restrictions. Facebook CEO Mark Zuckerberg visited Washington, D.C. last month to discuss national regulation with lawmakers. But for a state as big as California, many privacy and legal experts believe the CCPA could effectively become a broader standard for companies dealing with data. When Europe instituted its General Data Protection Regulation in 2018, many businesses made changes beyond the geographies subject to the regulation.

-CNBC’s Ylan Mui contributed to this report.

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Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: lauren feiner
Keywords: news, cnbc, companies, privacy, law, tells, google, data, california, information, landmark, rules, request, national, companies, facebook, businesses, states, customer, customers, comply


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PG&E power outage could cost the California economy more than $2 billion

The economic impact of PG&E’s preventative power cuts could be upwards of $2 billion, according to some estimates. Michael Wara of the Stanford Woods Institute for the Environment estimated that the economic cost of the power shutdown could reach $2.5 billion. “If one sums residential and small C&I [commercial and industrial] losses, the total is $2.5 billion in outage costs. Power outages often hit local businesses the hardest since they don’t always have the same large-scale infrastructure and


The economic impact of PG&E’s preventative power cuts could be upwards of $2 billion, according to some estimates. Michael Wara of the Stanford Woods Institute for the Environment estimated that the economic cost of the power shutdown could reach $2.5 billion. “If one sums residential and small C&I [commercial and industrial] losses, the total is $2.5 billion in outage costs. Power outages often hit local businesses the hardest since they don’t always have the same large-scale infrastructure and
PG&E power outage could cost the California economy more than $2 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: pippa stevens
Keywords: news, cnbc, companies, pge, residential, impact, customers, million, businesses, economic, billion, preventative, outage, economy, california, cost, wara, power, cuts


PG&E power outage could cost the California economy more than $2 billion

A customer shops for groceries at La Tapatia Market during a blackout in Napa, California, on Wednesday, Oct. 9, 2019.

The economic impact of PG&E’s preventative power cuts could be upwards of $2 billion, according to some estimates.

The state’s largest utility company began cutting power for customers in Northern and Central California on Wednesday as a precautionary measure aimed at preventing the outbreak of wildfires. Amid peak fire season and forecasts of wind gusts of up to 45 mph this week, PG&E announced the planned cuts on Monday for as many as 800,000 customers, totaling about 2.7 million people.

The preventative measure — which forced some businesses and schools to close — could have big economic repercussions.

Michael Wara of the Stanford Woods Institute for the Environment estimated that the economic cost of the power shutdown could reach $2.5 billion.

“If one sums residential and small C&I [commercial and industrial] losses, the total is $2.5 billion in outage costs. If one assumes only residential customer impact, $65 million,” he said in a tweet on Tuesday. He arrived at his estimate using the “Interruption Cost Estimate Calculator” created by the Lawrence Berkeley National Laboratory and Nexant, which compiles data on the estimated costs of power interruption.

Power outages often hit local businesses the hardest since they don’t always have the same large-scale infrastructure and power generators that bigger businesses might have. A day of lost business can also have a greater impact on their bottom line, since it’s a larger portion of annual revenue. Since the power cuts are concentrated in “suburban/rural” areas, Wara did not include “large C&I customers.”


Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: pippa stevens
Keywords: news, cnbc, companies, pge, residential, impact, customers, million, businesses, economic, billion, preventative, outage, economy, california, cost, wara, power, cuts


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