European markets mixed after weak US data; Spain set to call snap election; Scout24 shares jump 12%

Europe’s autos stocks led the losses during morning trade, down more than 1.1 percent amid earnings news. Italy’s Pirelli led the sectoral losses, after reporting a dip in full-year sales late Thursday. Looking at individual stocks, Germany’s Scout24 surged to the top of the European benchmark. It comes after Hellman 7 Friedman and Blackstone offered to buy the online classifieds group for 5.7 billion euros ($6.4 billion), including debt. Shares of Scout24 rose nearly 12 percent during morning t


Europe’s autos stocks led the losses during morning trade, down more than 1.1 percent amid earnings news. Italy’s Pirelli led the sectoral losses, after reporting a dip in full-year sales late Thursday. Looking at individual stocks, Germany’s Scout24 surged to the top of the European benchmark. It comes after Hellman 7 Friedman and Blackstone offered to buy the online classifieds group for 5.7 billion euros ($6.4 billion), including debt. Shares of Scout24 rose nearly 12 percent during morning t
European markets mixed after weak US data; Spain set to call snap election; Scout24 shares jump 12% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: sam meredith
Keywords: news, cnbc, companies, losses, led, billion, earnings, jump, weak, shares, reporting, comes, set, european, spain, stocks, snap, scout24, morning, markets, mixed


European markets mixed after weak US data; Spain set to call snap election; Scout24 shares jump 12%

Europe’s autos stocks led the losses during morning trade, down more than 1.1 percent amid earnings news. Italy’s Pirelli led the sectoral losses, after reporting a dip in full-year sales late Thursday. Shares of the tiremaker were down over 1 percent on the news.

Looking at individual stocks, Germany’s Scout24 surged to the top of the European benchmark. It comes after Hellman 7 Friedman and Blackstone offered to buy the online classifieds group for 5.7 billion euros ($6.4 billion), including debt. Shares of Scout24 rose nearly 12 percent during morning trade.

Meanwhile, France’s Eutelstat slumped to the bottom of the index amid earnings news. Shares of the Paris-listed stock tumbled 9 percent after reporting a fall in first-half net revenue.

Elsewhere, Spanish Prime Minister Pedro Sanchez is expected to call a snap general election on Friday. It comes after parliament rejected his minority government’s 2019 budget proposal.


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: sam meredith
Keywords: news, cnbc, companies, losses, led, billion, earnings, jump, weak, shares, reporting, comes, set, european, spain, stocks, snap, scout24, morning, markets, mixed


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Uber’s growth slowed dramatically in 2018

According to the private company’s self-reported financials, full-year revenue for 2018 was $11.3 billion, up 43 percent year over year. So while the growth rate is strong by most standards, Uber’s growth decelerated over 2018. In the fourth quarter of 2018, Uber also reported an adjusted loss of $768 million. Uber’s take rate, or the percentage of revenue Uber makes for every gross booking, declined in Q4. Correction: This story was updated to reflect Uber’s GAAP losses in 2018 and remove a rev


According to the private company’s self-reported financials, full-year revenue for 2018 was $11.3 billion, up 43 percent year over year. So while the growth rate is strong by most standards, Uber’s growth decelerated over 2018. In the fourth quarter of 2018, Uber also reported an adjusted loss of $768 million. Uber’s take rate, or the percentage of revenue Uber makes for every gross booking, declined in Q4. Correction: This story was updated to reflect Uber’s GAAP losses in 2018 and remove a rev
Uber’s growth slowed dramatically in 2018 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: paayal zaveri, deirdre bosa, carlo allegri
Keywords: news, cnbc, companies, revenue, uber, losses, 2018, slowed, business, quarter, ubers, growth, dramatically, billion, company


Uber's growth slowed dramatically in 2018

In 2018, Dara Khosrowshahi’s first full year as Uber’s CEO, the company narrowed losses and continued to grow revenue, though at a slower pace than in the previous year.

According to the private company’s self-reported financials, full-year revenue for 2018 was $11.3 billion, up 43 percent year over year.

Gross bookings, or the amount collected before payouts to drivers, grew to $50 billion for the year, up 45 percent from the prior year. Its adjusted losses decreased 15 percent in 2018 to $1.8 billion, down from $2.2 billion in 2017. The figure excludes the company’s sale of its Russia and Southeast Asia businesses. Including those two sales to Yandex and Grab, respectively, Uber actually saw GAAP losses of $370 million. GAAP losses in 2017 were $4.5 billion.

So while the growth rate is strong by most standards, Uber’s growth decelerated over 2018. On a quarterly basis, Uber continues to report heavy losses and slowing growth. Uber’s revenue for the fourth quarter came in at $3 billion, up 25 percent from the same quarter last year, lower than the 38 percent it grew in Q3.

While that’s not viable for most public companies, Uber is expected to go public this year with a rumored valuation of over $120 billion, and investors will have to decide if Uber’s slowing growth warrants that valuation.

In the fourth quarter of 2018, Uber also reported an adjusted loss of $768 million. A $358 million benefit from income taxes cut down what would have been a more than $840 million adjusted loss. Gross bookings for Q4 came in at $14.2 billion, up 37 percent from the same quarter a year prior. It’s the highest it has ever been, the company told investors.

In the lead-up to its 2019 IPO, Uber is pitching itself as a full platform for transportation and logistics, not just ride-hailing. The company hopes that moonshot projects such as Uber freight, electronic bikes, autonomous driving and its development of flying cars will help it own a piece of every trip across any vehicle. However, these segments are costly for Uber to develop, weighing on Uber’s long-term profitability.

Khosrowshahi took over Uber in November 2017 from founder Travis Kalanick. He inherited a company that was growing quickly but losing billions overseas and roiled by controversy and board infighting. One of his first moves was to retreat from Russia. A few months later, he sold Uber’s unprofitable Southeast Asia business.

He has hired a CFO and COO, and so far, appears on track to bring the company public this year.

At the same time, Khosrowshahi has made big expensive bets, such as Uber’s acquisition of the bike- and scooter-sharing start-up Jump, and doubling down on expanding Uber Eats.

Uber now considers food delivery part of its core business, along with ride-hailing. While it didn’t break out UberEats for the fourth quarter, the segment made up 17 percent of its business in Q3. Back in October, Uber said it was expanding its food-delivery business to cover 70 percent of the U.S. by the end of 2018.

Uber’s take rate, or the percentage of revenue Uber makes for every gross booking, declined in Q4. The company told investors that the decline is due to continued investment in new lines of business and rising competition.

Uber may be spending more in the lead-up to its IPO to shore up its market share. Research firm Second Measure shows that Lyft, Uber’s largest U.S. competitor, has taken 28.9 percent of the market over the last year. Lyft is also gearing up for an IPO this year, and both companies are racing to get out first. Uber and Lyft filed to go public confidentially on the same day.

Uber’s CFO, Nelson Chai, called 2018 the company’s strongest year yet.

“Q4 set another record for engagement on our platform,” Chai said in a statement. “In 2018, our ride sharing business maintained category leadership in all regions we serve, Uber Freight gained exciting traction in the US, JUMP e-bikes and e-scooters are on the road in over a dozen cities, and we believe Uber Eats became the largest online food delivery business outside of China, based on gross bookings.”

Correction: This story was updated to reflect Uber’s GAAP losses in 2018 and remove a revenue growth stat for 2017 that was not comparable to 2018.


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: paayal zaveri, deirdre bosa, carlo allegri
Keywords: news, cnbc, companies, revenue, uber, losses, 2018, slowed, business, quarter, ubers, growth, dramatically, billion, company


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Natural disasters cost $91 billion in 2018, according to federal report

Natural disasters cost the country $91 billion in 2018, according to a new report from the National Oceanic and Atmospheric Administration. The economic losses in 2018 were due to 14 different natural disasters, ranging from hurricanes to wildfires to winter storms. According to the report, 2018 had the fourth-highest total costs from natural disasters since NOAA started tracking this data in 1980. It also marked the eighth consecutive year with eight or more natural disasters that cost at least


Natural disasters cost the country $91 billion in 2018, according to a new report from the National Oceanic and Atmospheric Administration. The economic losses in 2018 were due to 14 different natural disasters, ranging from hurricanes to wildfires to winter storms. According to the report, 2018 had the fourth-highest total costs from natural disasters since NOAA started tracking this data in 1980. It also marked the eighth consecutive year with eight or more natural disasters that cost at least
Natural disasters cost $91 billion in 2018, according to federal report Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: carmin chappell, gene blevins
Keywords: news, cnbc, companies, disasters, losses, trump, federal, climate, record, warming, natural, report, 2018, according, 91, cost, billion


Natural disasters cost $91 billion in 2018, according to federal report

Natural disasters cost the country $91 billion in 2018, according to a new report from the National Oceanic and Atmospheric Administration.

The report’s findings are a sign that the changing climate and increasing numbers of extreme weather events are having a significant economic impact, even as the Trump administration continues to undo Obama-era climate regulations.

The economic losses in 2018 were due to 14 different natural disasters, ranging from hurricanes to wildfires to winter storms. Eighty percent, or $73 billion, of the total loss was attributable to just three events: Hurricane Michael in Florida, Hurricane Florence in the Carolinas, and wildfires in the West, including California.

According to the report, 2018 had the fourth-highest total costs from natural disasters since NOAA started tracking this data in 1980. It also marked the eighth consecutive year with eight or more natural disasters that cost at least $1 billion each.

Last year set a new record for wildfire costs, with $24 billion in losses caused by several fires throughout the summer and fall. November’s Camp Fire burned over 150,000 acres in northern California alone, destroying homes and businesses.

Since 1980, the U.S. has sustained over $1.6 trillion in losses due to natural disasters.

The Trump administration has been historically resistant to take action on climate change. President Donald Trump withdrew the U.S. from the Paris climate agreement during his first year in office.

The president has dismissed reports on the effects of climate change and mocked the concept of global warming during recent winter storms.

“Large parts of the Country are suffering from tremendous amounts of snow and near record setting cold,” Trump tweeted last month. “Wouldn’t be bad to have a little of that good old fashioned Global Warming right now!”

The report found that 2018 was the fourth-hottest year on record for the globe. NOAA has stated that “not only are severe snowstorms possible in a warming climate, they may even be more likely.”


Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: carmin chappell, gene blevins
Keywords: news, cnbc, companies, disasters, losses, trump, federal, climate, record, warming, natural, report, 2018, according, 91, cost, billion


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Australian dollar reverses losses after RBA holds rates

The Australian dollar rose, reversing earlier losses, after the Reserve Bank of Australia (RBA) held rates at record lows at its first meeting of the year but sounded less dovish than expected. The dollar index, which measures the greenback against a basket of six key rivals, was barely changed at 95.846 after gaining for three straight sessions. It gained as Treasury yields rose with that of the 10-year jumping 9 basis points over the past two sessions. “It will be hard for the Australian dolla


The Australian dollar rose, reversing earlier losses, after the Reserve Bank of Australia (RBA) held rates at record lows at its first meeting of the year but sounded less dovish than expected. The dollar index, which measures the greenback against a basket of six key rivals, was barely changed at 95.846 after gaining for three straight sessions. It gained as Treasury yields rose with that of the 10-year jumping 9 basis points over the past two sessions. “It will be hard for the Australian dolla
Australian dollar reverses losses after RBA holds rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-05  Authors: amr abdallah dalsh
Keywords: news, cnbc, companies, weaker, dollar, rates, rose, rise, view, trade, reverses, yen, rba, strategist, losses, session, australian, holds


Australian dollar reverses losses after RBA holds rates

The dollar held on to recent gains against its major peers on Tuesday, supported by a recovery in investors’ risk appetite, which gave an overnight boost to U.S. yields.

The Australian dollar rose, reversing earlier losses, after the Reserve Bank of Australia (RBA) held rates at record lows at its first meeting of the year but sounded less dovish than expected.

The dollar index, which measures the greenback against a basket of six key rivals, was barely changed at 95.846 after gaining for three straight sessions.

“The overly pessimistic view on developed economies and the overly dovish view on the (Federal Reserve) is being unwound,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

Trading was likely to remain subdued in Asia with many markets across the region closed for Lunar New Year holidays for much of the week.

The index rose 0.7 percent after dipping last week below its 200-day moving average for the first time since early January 2018.

It gained as Treasury yields rose with that of the 10-year jumping 9 basis points over the past two sessions.

Yields have climbed after MSCI’s gauge of global stocks hit a two-month high on Monday as optimism over recently concluded U.S.-China trade talks helped send U.S. technology and industrial shares higher.

The Aussie was last up 0.4 percent at $0.7255 about 50 minutes after the RBA’s decision.

It had traded in negative territory during most of the session after retail sales for December came in weaker than expected.

“The key message from the RBA seems clear – that they have noted the weaker global outlook, ongoing steep declines in Sydney and Melbourne house prices and concede that the third quarter GDP (gross domestic product) report was a fizzer,” said Sean Callow, Sydney-based senior currency strategist at Westpac.

Some market players are still expecting a rate cut later this year due to mounting signs of economic weakness.

“It will be hard for the Australian dollar to close above $0.7300 given the stubbornness of rates markets still pricing in considerable chance of RBA easing this year, premised on the RBA simply being too optimistic,” said Callow.

The euro was flat at $1.1438, off three-week high of $1.15145 set on Thursday.

Against the Japanese yen, the dollar rose a tad to 109.93 yen. It had risen above 110 yen for the first time since Dec. 31 overnight.

“There’s further room to rise for the U.S. two-year yield. If this move continues, dollar/yen will rise above 110 again,’ said Mizuho’s Yamamoto.

Sterling was flat at $1.3038 after seesawing during the previous session on uncertainty over the way Britain will leave the European Union.

In late Monday trade, sterling gave up gains made earlier in the day after a newspaper report said that goods shipped to Britain from the European Union could be waved through without checks in the event of a “no-deal” Brexit.

The Canadian dollar was a shade weaker against the greenback.

It fell one tenth of a percent overnight, reversing some of last week’s rally, as oil prices fell and the greenback broadly climbed.


Company: cnbc, Activity: cnbc, Date: 2019-02-05  Authors: amr abdallah dalsh
Keywords: news, cnbc, companies, weaker, dollar, rates, rose, rise, view, trade, reverses, yen, rba, strategist, losses, session, australian, holds


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Betting on the Super Bowl? The IRS will want a piece of your winnings

And even if no tax is withheld, you’re not off the hook for claiming the income on your tax return. One way to reduce what you owe on your winnings is to write off your gambling losses. “They just lose, walk away, and then they finally win and have no records to offset it with losses.” Additionally, you can only take a deduction for any gambling losses if you itemize your deductions on your tax return. Then there’s a W-2G that the casino might or might not send you, depending on how much you win


And even if no tax is withheld, you’re not off the hook for claiming the income on your tax return. One way to reduce what you owe on your winnings is to write off your gambling losses. “They just lose, walk away, and then they finally win and have no records to offset it with losses.” Additionally, you can only take a deduction for any gambling losses if you itemize your deductions on your tax return. Then there’s a W-2G that the casino might or might not send you, depending on how much you win
Betting on the Super Bowl? The IRS will want a piece of your winnings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: sarah obrien, icon sportswire, getty images, -andrew whalen, ceo of whalen financial
Keywords: news, cnbc, companies, super, bowl, withheld, losses, return, gambling, whalen, winnings, betting, piece, times, original, irs, win, tax


Betting on the Super Bowl? The IRS will want a piece of your winnings

Here’s how to feed a Super Bowl party for less than $45 9:58 AM ET Fri, 1 Feb 2019 | 02:35

Generally speaking, if you win more than $5,000 and the amount is 300 times the original bet, the payor is required to withhold 24 percent of your winnings for federal taxes. There could be instances, however, that trigger withholding when your win is under that threshold.

And, your final tax bill could be higher or lower than the amount withheld, depending on your other income and a variety of other factors. And even if no tax is withheld, you’re not off the hook for claiming the income on your tax return.

One way to reduce what you owe on your winnings is to write off your gambling losses. Of course, you’d need to be able to back up your claims with documentation.

“People don’t often think about keeping track of their losses,” Luscombe said. “They just lose, walk away, and then they finally win and have no records to offset it with losses.”

Additionally, you can only take a deduction for any gambling losses if you itemize your deductions on your tax return. The majority of taxpayers are not itemizers because they’re financially better off with the standard deduction, which was nearly doubled under new tax law that took effect in 2018.

More from Personal Finance:

Here’s why cost-conscious travelers continue to blow their vacation budgets

Here’s what many Americans are doing to get out from under debt. But beware the risks

These red flags on your 2018 tax return could spark interest from the IRS

And, even if you do itemize, you cannot claim losses in excess of your actual winnings, said Andrew Whalen, CEO of Whalen Financial in Las Vegas.

And, he said, if you win $10,000 or more, the casino likely will require you to fill out a government form intended to prevent anti-money laundering.

Then there’s a W-2G that the casino might or might not send you, depending on how much you win. For sports betting — which is treated differently, from a tax standpoint, than some other forms of gambling — you should receive one if you win at least $600 and, again, at least 300 times the original bet.


Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: sarah obrien, icon sportswire, getty images, -andrew whalen, ceo of whalen financial
Keywords: news, cnbc, companies, super, bowl, withheld, losses, return, gambling, whalen, winnings, betting, piece, times, original, irs, win, tax


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Cramer: Investors who bet against stocks in 2019 are scrambling to cover their losses

CNBC’s Jim Cramer contended Friday that investors who bet against stocks for 2019 may be now scrambling to cover their losses as the market attempts its fifth straight week of gains. The idea that this year would be a disaster for stocks is beginning to unravel, Cramer said on “Squawk Box.” Cramer was referring to short sellers, which are traders who bet against a company by selling shares they don’t own and buying them back at a lower price. Stocks opened higher Friday, in part, on renewed opti


CNBC’s Jim Cramer contended Friday that investors who bet against stocks for 2019 may be now scrambling to cover their losses as the market attempts its fifth straight week of gains. The idea that this year would be a disaster for stocks is beginning to unravel, Cramer said on “Squawk Box.” Cramer was referring to short sellers, which are traders who bet against a company by selling shares they don’t own and buying them back at a lower price. Stocks opened higher Friday, in part, on renewed opti
Cramer: Investors who bet against stocks in 2019 are scrambling to cover their losses Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: berkeley lovelace jr, scott mlyn
Keywords: news, cnbc, companies, losses, bet, market, fifth, investors, worst, straight, 2019, stocks, short, week, come, scrambling, cover, cramer


Cramer: Investors who bet against stocks in 2019 are scrambling to cover their losses

CNBC’s Jim Cramer contended Friday that investors who bet against stocks for 2019 may be now scrambling to cover their losses as the market attempts its fifth straight week of gains.

The idea that this year would be a disaster for stocks is beginning to unravel, Cramer said on “Squawk Box.” “And those who came in short are now kind of saying, ‘Well, it was supposed to be a really bad year. Where is that happening?'”

Cramer was referring to short sellers, which are traders who bet against a company by selling shares they don’t own and buying them back at a lower price.

Stocks opened higher Friday, in part, on renewed optimism that a solution to the government shutdown, now approaching its sixth week, would come soon. The Dow Jones Industrial Average, S&P 500, and Nasdaq all notched four straight weeks of gains and could get a fifth if markets end Friday high enough.

Markets ended 2018 by posting their worst yearly performances since the financial crisis amid concerns of an economic slowdown and fears that the Federal Reserve under Chairman Jerome Powell might be too aggressive on their path to raise interest rates. Cramer was one of Powell’s biggest critics.

Some Wall Street analysts at the time said those risk would remain in 2019 and perhaps “the worst” had “yet to come” in the new year amid pessimistic sentiment around earnings.

Cramer, the host of “Mad Money,” argued last week that the late-2018 breakdown left the market so undervalued that it felt “dangerous not to buy stocks,” even if their catalysts were “nothing to write home about.”

On Friday, Cramer said he’s a bit more “sanguine” than most about the market in 2019.


Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: berkeley lovelace jr, scott mlyn
Keywords: news, cnbc, companies, losses, bet, market, fifth, investors, worst, straight, 2019, stocks, short, week, come, scrambling, cover, cramer


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Apple shares rally, erase losses from revenue warning this month

Apple shares rose more than 3 percent on Friday, gaining enough ground to practically erase the losses that followed the company’s lowered revenue guidance three weeks ago. The stock traded as high as $158.13, briefly topping the $157.92 closing price on Jan. 2. After the market’s close that day, Apple said sales for its fiscal first quarter would likely fall short of expectations due to weaker-than-expected iPhone sales and headwinds in China. Apple lost 10 percent of its market value the day a


Apple shares rose more than 3 percent on Friday, gaining enough ground to practically erase the losses that followed the company’s lowered revenue guidance three weeks ago. The stock traded as high as $158.13, briefly topping the $157.92 closing price on Jan. 2. After the market’s close that day, Apple said sales for its fiscal first quarter would likely fall short of expectations due to weaker-than-expected iPhone sales and headwinds in China. Apple lost 10 percent of its market value the day a
Apple shares rally, erase losses from revenue warning this month Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: sara salinas, getty images
Keywords: news, cnbc, companies, high, warning, shares, erase, sales, day, revenue, apple, stock, rally, market, weekwatch, month, value, losses, drop


Apple shares rally, erase losses from revenue warning this month

Apple shares rose more than 3 percent on Friday, gaining enough ground to practically erase the losses that followed the company’s lowered revenue guidance three weeks ago.

The stock traded as high as $158.13, briefly topping the $157.92 closing price on Jan. 2. After the market’s close that day, Apple said sales for its fiscal first quarter would likely fall short of expectations due to weaker-than-expected iPhone sales and headwinds in China.

Apple lost 10 percent of its market value the day after the announcement, marking the stock’s steepest one-day drop since 2013. Shares closed at $157.76 Friday.

Even with the recent bounce, it’s been a particularly rough few months for Apple investors. The company, which became the first in the U.S. to reach a $1 trillion stock market value, has seen its shares drop 32 percent from its record high in October.

Apple reports first-quarter results next week.

WATCH: Tim Cook teases new Apple services to come in 2019


Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: sara salinas, getty images
Keywords: news, cnbc, companies, high, warning, shares, erase, sales, day, revenue, apple, stock, rally, market, weekwatch, month, value, losses, drop


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JetSmarter faces lawsuits, losses and security questions

Former employees say JetSmarter was losing up to $5 million a month in 2016 and 2017. Petrossov never disclosed or discussed the company’s losses in his many press interviews and articles about the JetSmarter. Privately, he told investors and employees that JetSmarter was like Amazon or Uber, which lost money for years to build scale. But even as JetSmarter was bleeding cash, Petrossov’s family continued to profit. But its investment implied a valuation for JetSmarter of less than $250 million —


Former employees say JetSmarter was losing up to $5 million a month in 2016 and 2017. Petrossov never disclosed or discussed the company’s losses in his many press interviews and articles about the JetSmarter. Privately, he told investors and employees that JetSmarter was like Amazon or Uber, which lost money for years to build scale. But even as JetSmarter was bleeding cash, Petrossov’s family continued to profit. But its investment implied a valuation for JetSmarter of less than $250 million —
JetSmarter faces lawsuits, losses and security questions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-08  Authors: robert frank, scott zamost, hannah kliot, jasmine wu, source, leo galvez
Keywords: news, cnbc, companies, petrossovs, million, clearlake, questions, money, employees, members, security, company, cash, lawsuits, losses, 2016, jetsmarter, faces


JetSmarter faces lawsuits, losses and security questions

“It’s like taking money and throwing it into a barbecue and burning it as fast as you can burn it,” said Dean Rotchin, founder and former CEO of BlackJet, which folded in 2016. “The operating cost of these aircrafts is very expensive.”

Former employees say JetSmarter was losing up to $5 million a month in 2016 and 2017. It was also spending heavily on marketing and events. It enlisted an army of celebrities, from Kardashian and supermodel Emily Ratajkowski to baseball legend David Ortiz and celebrity chef Robert Irvine, to tout the company as “brand ambassadors.” It hosted champagne-filled parties in New York, Los Angeles and Miami to attract wealthy new members. And it sponsored booths and VIP lounges at yacht shows, art fairs and other gatherings of the rich.

Petrossov never disclosed or discussed the company’s losses in his many press interviews and articles about the JetSmarter. Privately, he told investors and employees that JetSmarter was like Amazon or Uber, which lost money for years to build scale. He also said JetSmarter was creating a “community” of wealthy consumers that it could eventually monetize through sponsorships, partnerships and other sales.

But even as JetSmarter was bleeding cash, Petrossov’s family continued to profit. His wife, Lolita, was the company’s chief operating officer and ran the day-to-day business, according to court documents and former employees. Petrossov’s brother was also employed by the company. The Petrossovs live in a $2 million house in a gated community in Boca Raton.

To fund its losses, JetSmarter raised cash through three investment rounds. It said its third round, in 2016, raised $105 million and valued the company at $1.5 billion. A year later, however, JetSmarter needed more cash. Former employees said paychecks were delayed by four to five weeks when JetSmarter couldn’t meet payroll. A shuttle-experience manager, Grace Lamey, sued the company alleging that she and other employees weren’t being paid for overtime. (Lamey and JetSmarter settled and neither side would comment). JetSmarter said “all of our employees have always been paid.”

In early 2017, JetSmarter’s president, Gennady Barsky, was arrested and charged with five counts of grand theft stemming from an earlier business that had no connection to JetSmarter. Barsky pleaded not guilty to all of the counts and left the company. The case is pending.

But Barsky was a key link to the company’s investors, and his departure made fundraising more challenging, former employees say.

JetSmarter put together an investor presentation filled with optimistic projections to raise funds. It forecast revenue growing from $124 million in 2016 to more than $2 billion in 2019. It said membership would surge from 5,839 in 2016 to over 100,000 in 2020. Today, JetSmarter has about 8,000 members, according to people close to the company. The company declined to comment on any financials or its current membership numbers.

JetSmarter finally found an investor in Santa Monica, California-based Clearlake Capital, which invested alongside Leucadia National, now called Jefferies Financial Group. Neither Clearlake nor JetSmarter would disclose the amount. But people familiar with the deal said Clearlake and Leucadia invested around $75 million for ownership of about a third of the company. Clearlake also got priority in the event of a bankruptcy or liquidation as well as other considerations.

Jefferies declined to comment.

It’s unclear how much Clearlake — which has become actively involved in running the company — has invested since the funding round. But its investment implied a valuation for JetSmarter of less than $250 million — a drop of more than 80 percent.

After Clearlake’s investment, JetSmarter’s salespeople were pushed even harder to recruit new members and raise cash, according to former employees. Andrew Pressler, a former salesperson at JetSmarter who was fired, said the sales team would conduct what they called “money grabs,” using special deals, multiyear agreements or incentives to sign up members and bring in cash.

“We had to show our investors we were making money,” Pressler said.


Company: cnbc, Activity: cnbc, Date: 2019-01-08  Authors: robert frank, scott zamost, hannah kliot, jasmine wu, source, leo galvez
Keywords: news, cnbc, companies, petrossovs, million, clearlake, questions, money, employees, members, security, company, cash, lawsuits, losses, 2016, jetsmarter, faces


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China rebounds on trade hopes as Japan slips more than 2 percent

Hong Kong’s Hang Seng index extended gains to rise about 2 percent, as of its final hour of trade. The positive moves in China came after the country’s commerce ministry announced that vice ministerial level trade talks with the U.S. would be held on Jan. 7-8. South Korea’s Kospi also recovered from its earlier losses to close 0.83 percent higher at 2,010.25. Australia stocks fell as the benchmark ASX 200 slipped 0.25 percent to close at 5,619.4. National Australia Bank, on the other hand, recov


Hong Kong’s Hang Seng index extended gains to rise about 2 percent, as of its final hour of trade. The positive moves in China came after the country’s commerce ministry announced that vice ministerial level trade talks with the U.S. would be held on Jan. 7-8. South Korea’s Kospi also recovered from its earlier losses to close 0.83 percent higher at 2,010.25. Australia stocks fell as the benchmark ASX 200 slipped 0.25 percent to close at 5,619.4. National Australia Bank, on the other hand, recov
China rebounds on trade hopes as Japan slips more than 2 percent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: eustance huang
Keywords: news, cnbc, companies, losses, higher, stocks, hopes, slips, index, japan, trading, earlier, close, markets, china, fell, rebounds, trade


China rebounds on trade hopes as Japan slips more than 2 percent

Asia markets were mostly higher on Friday as developments on the U.S.-China trade front overcame fears of a slowdown in the global economy which resulted in sharp declines in stocks stateside overnight.

The Chinese mainland markets rebounded strongly after an earlier slip. The Shanghai composite bounced about 2.05 percent higher to close at around 2,514.87 and the Shenzhen composite jumped 2.658 percent to finish its trading day at approximately 1,279.49. The Shenzhen component rose 2.756 percent to close at about 7,284.84.

Hong Kong’s Hang Seng index extended gains to rise about 2 percent, as of its final hour of trade.

The positive moves in China came after the country’s commerce ministry announced that vice ministerial level trade talks with the U.S. would be held on Jan. 7-8.

The development on the trade front was also bolstered by positive data from China’s services sector. The Caixin/Markit services purchasing managers’ index jumped to a six-month high of 53.9 in December, rising from 53.8 in the previous month. The figure was significantly higher than the 50.0 mark which separates expansion from contraction.

The data came days after China reported a decline in its factory activity for December.

South Korea’s Kospi also recovered from its earlier losses to close 0.83 percent higher at 2,010.25.

Japan’s Nikkei 225, however, dropped 2.26 percent to close at 19,561.96 while the Topix index fell 1.53 percent to finish the trading day at 1,471.16, with most sectors seeing declines. Shares of Japanese conglomerate Softbank fell 2.89 percent and Fast Retailing, the company behind the Uniqlo chain of apparel stores, dropped 5.45 percent. Stocks in Japan were closed on Wednesday and Thursday for holidays.

Australia stocks fell as the benchmark ASX 200 slipped 0.25 percent to close at 5,619.4.

The heavily-weighted financial subindex declined 0.34 percent as shares of the country’s so-called Big Four banks were mixed; Australia and New Zealand Banking Group slipped 0.37 percent and Westpac saw losses of 0.04 percent. National Australia Bank, on the other hand, recovered from earlier losses to rise 0.21 percent while Commonwealth Bank of Australia was slightly higher.

“For the brave, now would be a good time to be looking at … some of these markets,” Stefan Hofer, a managing director and chief investment strategist at LGT Bank Asia, told CNBC’s “Squawk Box” on Friday. Hofer added that liquidity and trading volumes are “still quite thin at the outset of the year.”

“Fundamentally speaking, I think if we do have a trade deal with China, let’s say, by the middle of 2019, then Asia … will be the place to be in terms of equities,” he said, adding that the ongoing U.S.-China trade war has been “the major overhang that has been a problem” for Asian markets.


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: eustance huang
Keywords: news, cnbc, companies, losses, higher, stocks, hopes, slips, index, japan, trading, earlier, close, markets, china, fell, rebounds, trade


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Oil opens 2019 with losses on surging supply, signs of economic slowdown

Oil markets dropped by around 1 percent in 2019’s first trading on Wednesday, pulled down by surging U.S. output and concerns about an economic slowdown in 2019 as factory activity in China, the world’s biggest oil importer, contracted. International Brent crude futures for March were at $53.27 per barrel at 0421 GMT, down 53 cents, or 1 percent, from their final close of 2018. Traders said futures prices fell on expectations of oversupply amid surging U.S. production and concerns about a global


Oil markets dropped by around 1 percent in 2019’s first trading on Wednesday, pulled down by surging U.S. output and concerns about an economic slowdown in 2019 as factory activity in China, the world’s biggest oil importer, contracted. International Brent crude futures for March were at $53.27 per barrel at 0421 GMT, down 53 cents, or 1 percent, from their final close of 2018. Traders said futures prices fell on expectations of oversupply amid surging U.S. production and concerns about a global
Oil opens 2019 with losses on surging supply, signs of economic slowdown Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: getty images
Keywords: news, cnbc, companies, signs, futures, economic, worlds, production, opens, oil, prices, slowdown, supply, 2019, surging, crude, barrel, losses, concerns


Oil opens 2019 with losses on surging supply, signs of economic slowdown

Oil markets dropped by around 1 percent in 2019’s first trading on Wednesday, pulled down by surging U.S. output and concerns about an economic slowdown in 2019 as factory activity in China, the world’s biggest oil importer, contracted.

International Brent crude futures for March were at $53.27 per barrel at 0421 GMT, down 53 cents, or 1 percent, from their final close of 2018.

West Texas Intermediate (WTI) futures were at $45.01 per barrel, down 40 cents, or 0.9 percent.

In physical oil markets, Dubai crude averaged $57.318 a barrel for December, the lowest since October 2017, two traders who participate in the market said on Wednesday.

Similarly, Malaysia’s Petronas set the official selling price of a basket of December-loading Malaysian crude grades at $62.79 a barrel, the lowest since October 2017, the state oil firm said on Wednesday.

Traders said futures prices fell on expectations of oversupply amid surging U.S. production and concerns about a global economic slowdown.

“We are most likely past the peak of this long economic uptrend,” consultancy JBC Energy said in an analysis of 2018.

Factory activity weakened in December across Asia, including in China, as the Sino-U.S. trade war and a slowdown in Chinese demand hit production in most economies, pointing to a rocky start for the world’s top economic growth region in 2019.

Oil prices ended 2018 lower for the first time since 2015, after a desultory fourth quarter that saw buyers flee the market over growing worries about too much supply and mixed signals related to renewed U.S. sanctions on Iran.

“Oil prices … registered their first yearly decline in three years on fears of a slowing global economy and concerns of an ongoing supply glut,” said Adeel Minhas, a consultant at Australia’s Rivkin Securities.

For the year, WTI futures slumped nearly 25 percent, while Brent tumbled nearly 20 percent.

The outlook for 2019 is riddled with uncertainty, analysts said, including the U.S.-China trade concerns and Brexit, as well as political instability and conflict in the Middle East.

A Reuters poll showed oil prices are expected to trade below $70 per barrel in 2019 as surplus production, much of it from the United States, and slowing economic growth undermine efforts led by the Organisation of the Petroleum Exporting Countries (OPEC) to cut supply and prop up prices.

On the production side, all eyes will be on the ongoing surge in U.S. output and on OPEC’s and Russia’s supply discipline.

“Don’t underestimate shale producers and the wider U.S. oil industry in general. Too often this year the market pushed stories … bottlenecks(pipelines, frack crews, truck drivers, etc.), yet U.S. oil production will have grown by a massive 2+ million barrels per day between 1.1.2018 and 1.1.2019,” JBC Energy said.

U.S. crude output rose to an all-time high of 11.537 million barrels per day (bpd) in October, the Energy Information Administration (EIA) said on Monday. That makes the U.S. the world’s biggest oil producer ahead of Russia and Saudi Arabia.

Weekly data, which is more open to revisions, was reported last week at 11.7 million bpd in late December by the EIA.


Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: getty images
Keywords: news, cnbc, companies, signs, futures, economic, worlds, production, opens, oil, prices, slowdown, supply, 2019, surging, crude, barrel, losses, concerns


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