Google hit with $550 million fine in France over tax probe

Google CEO Sundar Pichai speaks during the Google I/O keynote session at Shoreline Amphitheatre in Mountain View, California on May 7, 2019. Google has agreed to pay 500 million euros ($550 million) in France in connection with a fiscal fraud probe. French financial prosecutors opened an investigation into the company’s tax dealings four years ago. A Google spokesperson said the settlement brings an end to tax and related disputes that have “persisted for many years.” This often results in them


Google CEO Sundar Pichai speaks during the Google I/O keynote session at Shoreline Amphitheatre in Mountain View, California on May 7, 2019. Google has agreed to pay 500 million euros ($550 million) in France in connection with a fiscal fraud probe. French financial prosecutors opened an investigation into the company’s tax dealings four years ago. A Google spokesperson said the settlement brings an end to tax and related disputes that have “persisted for many years.” This often results in them
Google hit with $550 million fine in France over tax probe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: annie palmer
Keywords: news, cnbc, companies, million, 550, pay, spokesperson, agreed, tax, probe, google, hit, fine, 500, financial, france, taxes, results


Google hit with $550 million fine in France over tax probe

Google CEO Sundar Pichai speaks during the Google I/O keynote session at Shoreline Amphitheatre in Mountain View, California on May 7, 2019.

Google has agreed to pay 500 million euros ($550 million) in France in connection with a fiscal fraud probe.

French financial prosecutors opened an investigation into the company’s tax dealings four years ago. Investigators were probing the company to determine if it evaded taxes by failing to declare the full extent of its activities in the country.

Shares of Google closed up 1.2% on Thursday.

A Google spokesperson said the settlement brings an end to tax and related disputes that have “persisted for many years.”

“The settlements comprise a €500 million payment that was ordered today by a French court, as well as €465 million in additional taxes that we had agreed to pay, and that have been substantially reflected in our prior financial results,” the spokesperson said in a statement. “We continue to believe that the best way to provide a clear framework for companies that operate around the world is co-ordinated reform of the international tax system.”

Google, Apple and other U.S. tech giants have long taken advantage of a loophole that allows them to report almost all their sales in Ireland, which offers corporations low tax rates. This often results in them paying little taxes in other European countries.


Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: annie palmer
Keywords: news, cnbc, companies, million, 550, pay, spokesperson, agreed, tax, probe, google, hit, fine, 500, financial, france, taxes, results


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SmileDirectClub slides 28% after stock market debut

Online dentistry company SmileDirectClub shares slid 28% on Thursday, the worst market debut for a unicorn start-up so far this year. SmileDirectClub ranks as the fifth worst debut of the 109 companies to go public this year. The company priced its initial public offering at $23 per share on Wednesday, above the expected range of $19 to $22. SmileDirectClub sold 58.5 million shares, raising $1.3 billion and valuing the online dentistry company at $8.9 billion. “You know, we’re here to build long


Online dentistry company SmileDirectClub shares slid 28% on Thursday, the worst market debut for a unicorn start-up so far this year. SmileDirectClub ranks as the fifth worst debut of the 109 companies to go public this year. The company priced its initial public offering at $23 per share on Wednesday, above the expected range of $19 to $22. SmileDirectClub sold 58.5 million shares, raising $1.3 billion and valuing the online dentistry company at $8.9 billion. “You know, we’re here to build long
SmileDirectClub slides 28% after stock market debut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: angelica lavito
Keywords: news, cnbc, companies, million, shares, katzman, public, smiledirectclub, billion, stock, slides, company, online, market, debut, according


SmileDirectClub slides 28% after stock market debut

Online dentistry company SmileDirectClub shares slid 28% on Thursday, the worst market debut for a unicorn start-up so far this year.

The company’s shares closed at $16.67 after opening at $20.55. SmileDirectClub ranks as the fifth worst debut of the 109 companies to go public this year. Shares of Uber, another unicorn — or start-ups valued at $1 billion or more — slid 7.6% on that stock’s first day on the public markets.

The company priced its initial public offering at $23 per share on Wednesday, above the expected range of $19 to $22. SmileDirectClub sold 58.5 million shares, raising $1.3 billion and valuing the online dentistry company at $8.9 billion. Thursday’s move values the company at roughly $6.4 billion.

The stock trades on the Nasdaq under the ticker symbol SDC.

“You know, we’re here to build long-term value with the stock,” SmileDirectClub co-founder Alex Fenkell said Thursday in an interview with CNBC’s Leslie Picker. “How [the stock] priced today I don’t think is going to dictate what we’re doing here.”

The start-up, founded in 2014, sells teeth aligners directly to consumers on its website and in its “SmileShops” starting at $1,895 for a two-year plan. Founders Fenkell and Jordan Katzman want to disrupt the orthodontics industry with less expensive teeth-straightening treatments, convenience, and splashy television and social media advertisements.

The company reported $423.2 million in sales last year, a 190% increase from the $146 million it reported in 2017, according to its prospectus filed last month. It posted a net loss of $74.8 million last year, more than double the net loss of $32.78 million in 2017.

Acquiring new customers is expensive. SmileDirectClub spent $289.3 million on marketing and general expenses last year.

Jordan Katzman’s father, David Katzman, funded SmileDirectClub’s seed round through his venture fund, Camelot Venture Group, and is the company’s CEO. Camelot invests in direct-to-consumer brands, such as 1-800-Contacts and Quicken Loans.

David Katzman’s brother, Steven Katzman, is chief operating officer. The Katzman family, combined, will retain more than 65% of the voting power between the three men after the offering. CEO David Katzman alone will hold nearly 30% of the vote with 87 million Class B shares, which control 10 votes for every 1 vote offered to a Class A share.

SmileDirectClub operates more than 300 locations, according to its initial prospectus filing. It has also signed partnerships with Walgreens and CVS to open “SmileShops” inside their drugstores.

Customers can visit a SmileShop to have someone scan their teeth and create a 3D image, which SmileDirectClub then uses to build a custom aligner. They can also order a kit online and send back an impression.

The Nashville, Tennessee-based company plans to use the proceeds from its IPO to fund international expansion and research and development, according to the filing. SmileDirectClub’s aligners are currently available in the U.S., Canada, Australia and the U.K.

— CNBC’s Elijah Shama contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: angelica lavito
Keywords: news, cnbc, companies, million, shares, katzman, public, smiledirectclub, billion, stock, slides, company, online, market, debut, according


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It now costs $350,000 a year to live a middle-class lifestyle in a big city—here’s a sad breakdown of why

Living a middle-class lifestyle on $350,000 a yearBelow is an example budget of a dual-income household with two kids. When you add on property tax, property maintenance and insurance, it costs this family over $75,000 a year in housing costs. When you add on property tax, property maintenance and insurance, it costs this family over $75,000 a year in housing costs. A married couple can earn up to $321,451 and pay a 24% marginal federal income tax rate. Any dollar after $321,451 is taxed 8% high


Living a middle-class lifestyle on $350,000 a yearBelow is an example budget of a dual-income household with two kids. When you add on property tax, property maintenance and insurance, it costs this family over $75,000 a year in housing costs. When you add on property tax, property maintenance and insurance, it costs this family over $75,000 a year in housing costs. A married couple can earn up to $321,451 and pay a 24% marginal federal income tax rate. Any dollar after $321,451 is taxed 8% high
It now costs $350,000 a year to live a middle-class lifestyle in a big city—here’s a sad breakdown of why Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: sam dogen
Keywords: news, cnbc, companies, cityheres, tax, property, school, couple, middleclass, live, income, million, 350000, lifestyle, breakdown, family, big, sad, little, costs, month


It now costs $350,000 a year to live a middle-class lifestyle in a big city—here's a sad breakdown of why

Who makes $350,000 a year?

Living a middle-class lifestyle on $350,000 a year

Below is an example budget of a dual-income household with two kids. The budget has been vetted by thousands of readers on my personal finance website, Financial Samurai, who also raise families in expensive cities like San Francisco, Los Angeles, New York, Boston and Washington, D.C.

Gross income review

In order to make $350,000 a year, both parents must be working. In this example, each parent puts away $19,000 in their respective 401(k)s for a combined $38,000 a year. After getting their standard $24,000 deduction, they pay $92,160 in total taxes and are left with $221,840. Because this couple earns less than $400,000, they can receive a tax credit of $2,000 per child. Since they have two children, they get a $4,000 credit.

Expenses review

Childcare: $2,450 per month. There’s no getting around this expense when both parents are working. Their childcare center costs $2,200 a month for full-time care. The couple then spends an extra $250 a month for some babysitting help.

There’s no getting around this expense when both parents are working. Their childcare center costs $2,200 a month for full-time care. The couple then spends an extra $250 a month for some babysitting help. Preschool: $2,000 per month. The second child goes to preschool full-time. The $2,000 per month does not include the suggested $3,000 per child donation the school asks each year to help fund new construction. The parents’ ultimate plan is to send both children to private grade school, which costs about $35,000 from K-8 and about $45,000 from 9-12.

The second child goes to preschool full-time. The $2,000 per month does not include the suggested $3,000 per child donation the school asks each year to help fund new construction. The parents’ ultimate plan is to send both children to private grade school, which costs about $35,000 from K-8 and about $45,000 from 9-12. Food: $2,129 per month. It makes little sense to spend hours cooking when you’re already tired and want to reserve your remaining energy for taking care of your kids. The budget includes expenses like groceries, eating out and food delivery.

It makes little sense to spend hours cooking when you’re already tired and want to reserve your remaining energy for taking care of your kids. The budget includes expenses like groceries, eating out and food delivery. Mortgage: $3,900 per month. This amount isn’t bad for a $900,000 mortgage with a 3.25% interest rate; $2,000 out of the $3,900 goes toward paying down principal and building net worth. Therefore, this couple is adding $24,000 a year in forced savings to their annual 401(k) savings.

(Their $1.8 million assessed house is a standard 2,200 square feet, four-bedroom, three-bathroom home on a 3,000 square foot lot. But it’s nothing fancy since the median price for a single-family home is $1.7 million in San Francisco. To give you an idea of how little you actually get for a $1.85 million home, below is an example of a typical home in that price range in Golden Gate Heights, one of San Francisco’s best-kept secret neighborhoods. As you can see, it’s a standard middle-class house — granted, with panoramic ocean views — and only has 1,288 square feet of living space, two bedrooms and one bathroom.) Property tax: $1,860 per month. The $10,000 SALT deduction cap for individuals and married couples hurts homeowners in expensive real estate markets. The annual property tax on a $1.8 million assessed house alone is roughly $22,320. On top of that, the couple is also paying about $25,000 in state income taxes. When you add on property tax, property maintenance and insurance, it costs this family over $75,000 a year in housing costs.

The $10,000 SALT deduction cap for individuals and married couples hurts homeowners in expensive real estate markets. The annual property tax on a $1.8 million assessed house alone is roughly $22,320. On top of that, the couple is also paying about $25,000 in state income taxes. When you add on property tax, property maintenance and insurance, it costs this family over $75,000 a year in housing costs. Vacation: $7,800 per year. Three weeks of vacation a year is reasonable for the typical American household. After tax, four round-trip tickets to Hawaii will cost a family about $2,000. Then budget lodging for a week will cost at least another $1,400. There’s also food and activities to pay for. (No wonder why “staycations” are becoming more common for financially stretched households.)

Three weeks of vacation a year is reasonable for the typical American household. After tax, four round-trip tickets to Hawaii will cost a family about $2,000. Then budget lodging for a week will cost at least another $1,400. There’s also food and activities to pay for. (No wonder why “staycations” are becoming more common for financially stretched households.) Car payment: $380 per month. When you have little ones, all you want to do is protect them from harm. Even if you consider yourself a good driver, one distracted driver reading a text message could cause a serious accident. No longer do you feel comfortable driving a compact city car while transporting your family. Instead, you want a vehicle with the highest safety rating. Baby/toddler things: $380 per month. You can spend as little or as much as you want on your baby. But this family buys disposable (not washable) diapers, tons of baby-proofing material, lots of educational toys, the best car seats and two strollers.

You can spend as little or as much as you want on your baby. But this family buys disposable (not washable) diapers, tons of baby-proofing material, lots of educational toys, the best car seats and two strollers. Entertainment: $500 per month. Date night can easily cost $200 per outing for two once you include tickets to a ball game or an Off-Broadway show and transportation. Entertainment costs also include sporting equipment, memberships, Netflix, cable, internet and more. College savings: $1,000 per month. According to the College Board, the average cost of tuition and fees for the 2018-2019 school year was $10,230 for state residents at public colleges and $26,290 for out-of-state students. The average private school tuition is over $35,000. In 16 to 18 years, tuition will likely be double today’s averages.

Final cash flow review

The end result is annual cash flow of only $1,456, which could get spent in a hurry, as unexpected situations will likely pop up. Despite such little cash flow, this household is building roughly $63,000 in liquid net worth each year by paying down their mortgage and contributing to their employer-sponsored retirement accounts.

We all deserve to live a middle-class lifestyle. Unfortunately, we’ve first got to sacrifice more than ever to get there today.

Unfortunately, despite making $350,000 a year, this couple will be unable to retire before 60 because they aren’t building an after-tax investment portfolio to generate passive income. They can’t withdraw from their 401(k)s before age 59½ without a 10% early distribution penalty, nor can they rent out their home for income, given it’s their primary residence. In order for this couple to achieve financial independence, they need to accumulate a net worth equal to at least 25 times their annual expenses — or 20 times their annual gross income. In other words, they need to amass a net worth of between $5.5 million to $7 million if their income and expenses remain unchanged. That’s tough to do with so little in savings per year.

Recommendations for a better life

If you’re one of the many families struggling to get ahead in an expensive city on a high salary, here are five suggestions: 1. Limit your household income up to $321,451 after all deductions. A married couple can earn up to $321,451 and pay a 24% marginal federal income tax rate. Any dollar after $321,451 is taxed 8% higher at a 32% marginal federal income tax rate. If you’re feeling overly stressed at work and want to spend more time with your children, consider working less if you’re making more than the 24% marginal tax bracket income threshold. Not only might your stress decline, you’ll be able to reduce childcare expenses. 2. Stop wanting a middle-class lifestyle. It’s worth sacrificing your lifestyle in the short term for long-term gain. By renting a more modest home for $4,000 a month, this family will free up $27,000 a year in cash flow. By sending their oldest to public elementary school, this family will gain another $24,000 a year in cash flow. An additional $51,000 a year in cash flow is huge when coupled with $38,000 a year in 401(k) contributions. This couple could also limit their vacations to more local destinations, and cut back on meal spending by doing more bulk cooking and focusing on simple foods. 3. Build an after-tax investment portfolio. Earning passive investment income is the key to financial freedom. Using conventional rules, you can’t live off your 401(k) or IRA until the age of 59½. (Here’s my ranking of the best passive income investments today, so you can retire sooner rather than later.) 4. Move somewhere else. Once you’ve accumulated enough capital, consider relocating to a lower-cost area. Thanks to technology, there’s a multi-decade demographic trend towards living in the heartland, where property prices and rents are much cheaper. 5. Know your finances inside out. The people who end up with financial problems are typically the ones who don’t stay on top of their finances each week. Ten years later, they finally wake up and wonder where all their money went. In the past, an Excel spreadsheet was fine. Now, there are plenty of free financial tools out there to use to not only track your finances, but x-ray your investment portfolios for excessive fees and help keep you on track to reaching your retirement goals.

The sad truth


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: sam dogen
Keywords: news, cnbc, companies, cityheres, tax, property, school, couple, middleclass, live, income, million, 350000, lifestyle, breakdown, family, big, sad, little, costs, month


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Peloton sets IPO range between $26 and $29 per share, looks to raise as much as $1.2 billion

Peloton seeks to raise as much as $1.16 billion in its initial public offering, the company known for its connected at-home fitness equipment said Tuesday in a regulatory filing. Peloton plans to price its shares between $26 and $29. The company is offering 40 million shares, which would value Peloton at $8.06 billion at the high end of the range. In the fiscal year ended June 30, Peloton reported sales grew 110% to $915 million from $435 million in fiscal 2018. Meanwhile, its 2019 net loss wide


Peloton seeks to raise as much as $1.16 billion in its initial public offering, the company known for its connected at-home fitness equipment said Tuesday in a regulatory filing. Peloton plans to price its shares between $26 and $29. The company is offering 40 million shares, which would value Peloton at $8.06 billion at the high end of the range. In the fiscal year ended June 30, Peloton reported sales grew 110% to $915 million from $435 million in fiscal 2018. Meanwhile, its 2019 net loss wide
Peloton sets IPO range between $26 and $29 per share, looks to raise as much as $1.2 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: angelica lavito
Keywords: news, cnbc, companies, offering, loss, billion, net, shares, company, share, range, ipo, raise, peloton, sets, pelotons, million, month, looks, list


Peloton sets IPO range between $26 and $29 per share, looks to raise as much as $1.2 billion

Peloton seeks to raise as much as $1.16 billion in its initial public offering, the company known for its connected at-home fitness equipment said Tuesday in a regulatory filing.

Peloton plans to price its shares between $26 and $29. The company is offering 40 million shares, which would value Peloton at $8.06 billion at the high end of the range.

The company sells fitness equipment, including stationary bikes and treadmills, that are equipped with screens. Users pay $39 a month to stream Peloton’s classes.

Peloton filed its initial prospectus last month. Documents showed while Peloton’s revenue is growing, its losses are widening. In the fiscal year ended June 30, Peloton reported sales grew 110% to $915 million from $435 million in fiscal 2018. Meanwhile, its 2019 net loss widened to $245.7 million, from a net loss of $47.9 million in the prior year.

Peloton, which will list under the ticker PTON, expects to trade its shares on Nasdaq.

Peloton made it onto CNBC’s “Disruptor 50” list the past two years.

Disclosure: CNBC parent Comcast-NBCUniversal is an investor in Peloton.

— CNBC’s Lauren Hirsch contributed to this story


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: angelica lavito
Keywords: news, cnbc, companies, offering, loss, billion, net, shares, company, share, range, ipo, raise, peloton, sets, pelotons, million, month, looks, list


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Electric truck maker Rivian lands $350 million investment from Cox Automotive

DETROIT — All-electric vehicle maker Rivian is adding to its investor base, which currently includes Amazon and Ford Motor, providing additional support that the company could be formidable competition for Tesla and others. Rivian on Tuesday announced automotive services company Cox Automotive will make an equity investment of $350 million in the Plymouth, Michigan-based company. The partnership marks Rivian’s third investment announcement of 2019, following Amazon leading a $700 million investm


DETROIT — All-electric vehicle maker Rivian is adding to its investor base, which currently includes Amazon and Ford Motor, providing additional support that the company could be formidable competition for Tesla and others. Rivian on Tuesday announced automotive services company Cox Automotive will make an equity investment of $350 million in the Plymouth, Michigan-based company. The partnership marks Rivian’s third investment announcement of 2019, following Amazon leading a $700 million investm
Electric truck maker Rivian lands $350 million investment from Cox Automotive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: michael wayland
Keywords: news, cnbc, companies, amazon, ford, 350, vehicle, rivian, vehicles, automotive, investment, company, cox, electric, truck, million, maker, lands


Electric truck maker Rivian lands $350 million investment from Cox Automotive

DETROIT — All-electric vehicle maker Rivian is adding to its investor base, which currently includes Amazon and Ford Motor, providing additional support that the company could be formidable competition for Tesla and others.

Rivian on Tuesday announced automotive services company Cox Automotive will make an equity investment of $350 million in the Plymouth, Michigan-based company.

The partnership marks Rivian’s third investment announcement of 2019, following Amazon leading a $700 million investment round in February and $500 million from Ford in April.

“We are building a Rivian ownership experience that matches the care and consideration that go into our vehicles,” said RJ Scaringe, founder and CEO of Rivian, in a statement. “Cox Automotive’s global footprint, service and logistics capabilities, and retail technology platform make them a great partner for us.”


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: michael wayland
Keywords: news, cnbc, companies, amazon, ford, 350, vehicle, rivian, vehicles, automotive, investment, company, cox, electric, truck, million, maker, lands


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Nissan’s abrupt CEO exit complicates turnaround efforts as corruption scandal spreads

For now, at least, “the investigation is complete,” Nissan spokeswoman Azusa Momose told CNBC. Within Nissan, several current and former executives told CNBC, morale has sunk and there is an air of concern about the future. “This is not a good time for [Nissan’s financial scandals] to happen,” said Stephanie Brinley, an analyst with IHS Markit. Saikawa’s replacement, Chief Operating Officer Yasuhiro Yamauchi, is seen as temporary while the search for a permanent CEO gets underway. Munoz, who was


For now, at least, “the investigation is complete,” Nissan spokeswoman Azusa Momose told CNBC. Within Nissan, several current and former executives told CNBC, morale has sunk and there is an air of concern about the future. “This is not a good time for [Nissan’s financial scandals] to happen,” said Stephanie Brinley, an analyst with IHS Markit. Saikawa’s replacement, Chief Operating Officer Yasuhiro Yamauchi, is seen as temporary while the search for a permanent CEO gets underway. Munoz, who was
Nissan’s abrupt CEO exit complicates turnaround efforts as corruption scandal spreads Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: paul a eisenstein
Keywords: news, cnbc, companies, corruption, saikawa, million, company, ghosn, told, nissans, efforts, executives, ceo, abrupt, spreads, officer, exit, scandal, executive, turnaround, complicates, nissan, investigation


Nissan's abrupt CEO exit complicates turnaround efforts as corruption scandal spreads

Hiroto Saikawa, president and chief executive officer of Nissan Motor Akio Kon | Bloomberg | Getty Images

The abrupt resignation Monday of Nissan CEO Hiroto Saikawa, after an internal investigation uncovered falsified documents that boosted his compensation, marks a dramatic shift in an ongoing scandal that broke open last November with the arrest of then-Chairman Carlos Ghosn. Suddenly, Saikawa — who ordered the investigation into his former mentor — finds himself in the spotlight and standing accused of pocketing excess pay, too. It also compounds the woes facing a company that appears to have done little in the past to monitor or rein in its top executives. And the lack of oversight comes to light at a time when Nissan’s sales and earnings have taken a sharp tumble, forcing substantial cuts in production capacity and the elimination of thousands of jobs worldwide.

Questions about the board

“With the scandal that already was circling the company, any further lack of credibility on the part of its leadership is completely unacceptable,” said Eric Schiffer, CEO of Reputation Management Consultants. “What seemed like an individual case is now a pattern … revealing a total lack of control by senior management and raising questions about the incompetence, or complicity, of the Nissan board. This requires a deeper, full-scale investigation.” For now, at least, “the investigation is complete,” Nissan spokeswoman Azusa Momose told CNBC. But it has led to some changes. The company revamped its corporate governance structure in June, adding new board committees, separating its oversight and executive functions and overhauling the board with more independent outside directors, Momose said in an email. The internal probe has been underway for more than a year at Nissan, resulting in the arrests of 65-year-old Ghosn and former director Greg Kelly last November. Prosecutors initially cited company data alleging the Brazilian-born executive had substantially underreported his income. Since then, they have ladled on a variety of additional charges while investigating other allegations. Reports published last month by The Wall Street Journal alleged Ghosn diverted millions through an ally in Oman that eventually landed in a Silicon Valley investment firm he ran with his son Anthony.

Concealing payments

Overall, Nissan believes Ghosn and Kelly concealed more than $327 million in payments to themselves and other executives — $187 million in nondisclosed compensation and $140 million in improper expenditures, the company said in a five-page summary of its internal investigation Monday. That included about 96.5 million yen paid to Saikawa in 2013 after he complained about his pay, or roughly $900,000, based on current foreign exchange rates. Nissan said it doesn’t plan to punish or hold others who benefited from Kelly and Ghosn’s alleged misconduct responsible for the overpayments. The company said there is “no reason to believe that any of the individuals were complicit in misconduct.” All along, Ghosn has proclaimed his innocence, even alleging he was set up as part of a “corporate coup.” He hasn’t been the only one questioning the motives and pointing a finger at Saikawa. Veteran auto analyst George Peterson, of AutoTrends Consulting, told CNBC he suspected the ouster of Ghosn was part of a plan to put some distance between Nissan and French alliance partner Renault.

Scuttled merger

The relationship has clearly soured since Ghosn’s arrest, reaching a low point in May when objections by Saikawa and other senior Nissan executives helped scuttle a proposed merger between Renault and Fiat Chrysler. Within Nissan, several current and former executives told CNBC, morale has sunk and there is an air of concern about the future. Certainly, it hasn’t helped that the automaker suffered a sharp downturn during the fiscal year that ended March 31, global sales dipping 4.3%, to 5.2 million vehicles, while earnings were off 57%, to 319 billion yen, or $2.9 billion. The first quarter of fiscal 2020, which closed June 30, got off to an even worse start. Analysts had expected Nissan to deliver earnings of about $1.6 billion for the quarter. Instead, the numbers came in at a meager $58 million, or 6.4 billion yen, down by more than 94% from the year before.

Downsizing program

That has forced Nissan management to order a downsizing program that will not only see it trim its model count and production capacity by 10% over the next three years, but also reduce its global workforce by 12,500. “This is not a good time for [Nissan’s financial scandals] to happen,” said Stephanie Brinley, an analyst with IHS Markit. “All this turmoil, for sure, is a drag on the company. It’s a distraction that makes it hard to move a lot of projects forward.” Analysts also worry the decision-making process at the top could wind up on hold. Saikawa’s replacement, Chief Operating Officer Yasuhiro Yamauchi, is seen as temporary while the search for a permanent CEO gets underway. Complicating matters, the ongoing corruption probe has, in the eyes of some observers, been used to diminish the role of the foreign executives who had come to take leading roles in the nearly 20 years since Renault bailed out a faltering Nissan in 1999.

Westerners depart

Many found themselves under intense scrutiny. One former senior executive who had worked in Japan for a number of years warned of a possible “bloodbath” following the unexpected departure in January of Jose Munoz, one of the company’s highest-ranking Westerners. Munoz, who was Nissan’s highly respected chief performance officer, told colleagues he decided to leave after “some period of serious contemplation,” Automotive News reported at the time. He joined Hyundai Motor as its chief operating officer in May. The departures continue, most recently with the August departure of Karim Habib, who had been serving as head of design for the high-line Infiniti division. “Every time the company loses another one of these Western executives, it becomes harder and harder” to keep itself focused on the challenges it faces, said another former Nissan executive who had spent several years working in Japan.

What comes next?


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: paul a eisenstein
Keywords: news, cnbc, companies, corruption, saikawa, million, company, ghosn, told, nissans, efforts, executives, ceo, abrupt, spreads, officer, exit, scandal, executive, turnaround, complicates, nissan, investigation


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Oil drops after Trump says he fired national security advisor John Bolton

“I informed John Bolton last night that his services are no longer needed at the White House. Trump said Tuesday he fired national security advisor John Bolton, saying on Twitter he had “disagreed strongly with many of his suggestions.” Oil futures fell on Tuesday, losing early gains, after President Donald Trump announced that he fired national security advisor John Bolton . Prince Abdulaziz made clear that ‘no radical’ change in the Saudi oil policy is forthcoming,” said Tamas Varga of oil bro


“I informed John Bolton last night that his services are no longer needed at the White House. Trump said Tuesday he fired national security advisor John Bolton, saying on Twitter he had “disagreed strongly with many of his suggestions.” Oil futures fell on Tuesday, losing early gains, after President Donald Trump announced that he fired national security advisor John Bolton . Prince Abdulaziz made clear that ‘no radical’ change in the Saudi oil policy is forthcoming,” said Tamas Varga of oil bro
Oil drops after Trump says he fired national security advisor John Bolton Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10
Keywords: news, cnbc, companies, prince, saudi, trump, fired, million, john, week, opec, advisor, production, security, oil, bolton, drops, national


Oil drops after Trump says he fired national security advisor John Bolton

“I informed John Bolton last night that his services are no longer needed at the White House. I disagreed strongly with many of his suggestions, as did others in the Administration, and therefore I asked John for his resignation, which was given to me this morning,” Trump said in a tweet.

Trump said Tuesday he fired national security advisor John Bolton, saying on Twitter he had “disagreed strongly with many of his suggestions.”

U.S. West Texas Intermediate (WTI) futures settled 45 cents lower, or 0.8%, at $57.40 a barrel. Brent futures dropped 34 cents, or 0.5%, to $62.25 a barrel.

Oil futures fell on Tuesday, losing early gains, after President Donald Trump announced that he fired national security advisor John Bolton .

But minutes later, Bolton in his own tweet said that he “offered to resign” Monday night, and that Trump told him, “Let’s talk about it tomorrow.

While Bolton’s exit stunned Washington, it also weighed on markets as his removal “dials back fears of an attack on Iran,” John Kilduff of Again Capital told CNBC.

Before Trump’s announcement, oil markets were headed higher on Tuesday toward its longest run of gains since late July.

The commodity had been rising on the updated outlook from Prince Abdulaziz bin Salman, Saudi Arabia’s new energy minister and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC). Prince Abdulaziz said the kingdom’s policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained.

He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC producers including Russia, would be in place for the long term.

“Clearly, the Kingdom wants higher oil prices … Prince Abdulaziz made clear that ‘no radical’ change in the Saudi oil policy is forthcoming,” said Tamas Varga of oil brokerage PVM.

“It will be interesting to see if we get any hint from him whether the producer group in general and Saudi Arabia in particular sees the need for deeper production cuts.”

The OPEC+ joint ministerial monitoring committee (JMMC), which reports on compliance with the cuts, is due to meet on Thursday in Abu Dhabi.

There have been concerns about producers’ adherence to the agreement as OPEC members Iraq and Nigeria, among others, exceeded their quota in August and Russia also did not fully comply.

“Markets will need to see concrete progress on the production front, even as the world’s economy slows, to sustain gains,” said Jeffrey Halley, senior market analyst at OANDA.

Goldman Sachs lowered its forecast on 2019 oil demand growth to 1 million barrels per day (bpd), down 100,000 bpd, but left its 2020 demand growth estimate broadly unchanged at 1.4 million bpd.

“Our oil supply-demand outlook for 2020 calls for additional OPEC production cuts to keep inventories near normal,” Goldman analysts wrote in a note.

In the United States, crude stockpiles are likely to have fallen for a fourth consecutive week last week, a preliminary Reuters poll showed on Monday.

Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.6 million barrels in the week to Sept 6.


Company: cnbc, Activity: cnbc, Date: 2019-09-10
Keywords: news, cnbc, companies, prince, saudi, trump, fired, million, john, week, opec, advisor, production, security, oil, bolton, drops, national


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120 million workers will need retraining due to AI—but they may already have the skills employers want most

According to a new report from IBM, an estimated 120 million workers worldwide will need to be retrained as a result of AI and automation within the next three years. In fact, it’s soft skills companies are most on the hunt for. These all moved up in importance from a previous ranking in 2016, when executives said technical STEM skills and computer and software/application skills were most important. “While organizations still struggle to address gaps in technical skills, there have been signifi


According to a new report from IBM, an estimated 120 million workers worldwide will need to be retrained as a result of AI and automation within the next three years. In fact, it’s soft skills companies are most on the hunt for. These all moved up in importance from a previous ranking in 2016, when executives said technical STEM skills and computer and software/application skills were most important. “While organizations still struggle to address gaps in technical skills, there have been signifi
120 million workers will need retraining due to AI—but they may already have the skills employers want most Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: jennifer liu
Keywords: news, cnbc, companies, technical, companies, need, million, employers, 120, business, ability, today, skills, ibm, aibut, workers, address, retraining


120 million workers will need retraining due to AI—but they may already have the skills employers want most

According to a new report from IBM, an estimated 120 million workers worldwide will need to be retrained as a result of AI and automation within the next three years.

Despite these projections, however, technical know-how isn’t the most important thing employers want from their workforce.

In fact, it’s soft skills companies are most on the hunt for. Executives identified traits like adaptability, time management and ability to work well on teams as some of the most crucial to the workforce today. These all moved up in importance from a previous ranking in 2016, when executives said technical STEM skills and computer and software/application skills were most important.

There are a few likely reasons for this, researchers note. First, companies have made significant strides in the last few years to invest in and integrate emerging tech across industries. “Entirely new areas of expertise, such as data science and machine learning, have saturated nearly every industry in a new business environment laden with powerful technology,” the report reads. “While organizations still struggle to address gaps in technical skills, there have been significant efforts and investments to address these gaps at multiple levels to lessen the impact on organizations.”

While companies have covered more ground investing in technology and hiring people with a background in it, they’re now faced with a skills shortage among existing workers. To bridge the gap, business leaders want to know their employees will be able to learn such skills as quickly as new tech emerges.

These are the most important skills in the workforce today, according to executives:

Willingness to be flexible, agile and adaptable to change Time management skills and ability to prioritize Ability to work effectively in team environments Ability to communicate effectively in business context Analytics skills and business acumen Technical core capabilities for STEM Capacity for innovation and creativity Basic computer and software/application skills Ethics and integrity Foreign language proficiency Fundamental core capabilities around reading, writing and arithmetic Industry- or occupation-specific skills

This sentiment echoes a recent talk from Elon Musk, who said “AI will make jobs kind of pointless.” Even those who study engineering specifically may find their skill set obsolete when “eventually, the AI will just write its own software.” However, the Tesla CEO notes businesses focusing on human interaction will continue to thrive, further highlighting the necessary interpersonal skills that robots are less likely to replace, at least as quickly.

Additionally, where technical skills can be taught though a series of coursework, solid behavioral skills can only be practiced through experience.

“Reskilling for technical skills is typically driven by structured education with a defined objective with a clear start and end,” Amy Wright, IBM managing director for talent, told Bloomberg. “Building behavioral skills takes more time and is more complex.”

It takes longer for workers to close a skills gap now than ever before, according to IBM — on average 36 days of training today compared to three days in 2014. Furthermore, only half of companies surveyed said they had a strategy in place to address the skills gap in their sector, and the most common practice was hiring outside talent.

Such measures won’t fully address the skills shortage, IBM says, and it offers three recommendations instead. First, companies must personalize the employee development experience. Essentially, employers should use AI itself to get a better grasp of where workers are now, skills-wise, and personalize a learning plan to future-proof their career with the company.

Companies should also be transparent about the ways employees will need to grow their skills in areas that will impact to the business most.

And finally, promoting existing talent (not recruiting) will play a crucial role. IBM says employers will benefit by investing in workers who have an established background with the company who can then drive innovation from within.

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Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: jennifer liu
Keywords: news, cnbc, companies, technical, companies, need, million, employers, 120, business, ability, today, skills, ibm, aibut, workers, address, retraining


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GameStop shares tank after earnings miss, cuts sales forecast

Shares of GameStop fell more than 15% in extended trading Tuesday after the company reported second quarter earnings and sales that missed analysts’ expectations while significantly lowering its same-store sales forecast. Trends such as gaming on smartphones or on a computer have also grown in popularity, which are stealing sales from GameStop’s brick-and-mortar shops. It also said it plans to spend less on capital expenditures, lowering its forecast to a range of $90 million to $95 million comp


Shares of GameStop fell more than 15% in extended trading Tuesday after the company reported second quarter earnings and sales that missed analysts’ expectations while significantly lowering its same-store sales forecast. Trends such as gaming on smartphones or on a computer have also grown in popularity, which are stealing sales from GameStop’s brick-and-mortar shops. It also said it plans to spend less on capital expenditures, lowering its forecast to a range of $90 million to $95 million comp
GameStop shares tank after earnings miss, cuts sales forecast Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: jasmine wu
Keywords: news, cnbc, companies, cents, loss, compared, shares, company, share, miss, earnings, sales, tank, million, gamestop, cuts, gaming, forecast


GameStop shares tank after earnings miss, cuts sales forecast

Shares of GameStop fell more than 15% in extended trading Tuesday after the company reported second quarter earnings and sales that missed analysts’ expectations while significantly lowering its same-store sales forecast.

The company has been struggling to grow sales as consumers increasingly turn to purchasing games and gaming consoles online, through e-commerce sites such as Amazon. Trends such as gaming on smartphones or on a computer have also grown in popularity, which are stealing sales from GameStop’s brick-and-mortar shops. It also has been a while since consumers have gotten excited about a new gaming system.

“While we experienced sales declines across a number of our categories during the quarter, these trends are consistent with what we have historically observed towards the end of a hardware cycle,” CFO Jim Bell said, in a written statement.

Here’s what the company reported compared with what Wall Street expected, based on a survey of analysts by Refinitiv:

Adjusted earnings per share: loss of 32 cents vs. 21 cent loss expected

Revenue: $1.29 billion vs. $1.34 billion expected

GameStop lowered its same-store sales forecast for the fiscal year. It said it now expects sales at stores open at least 12 months to fall in the low teens, compared with prior expectations of a decrease between 5% and 10%.

It also said it plans to spend less on capital expenditures, lowering its forecast to a range of $90 million to $95 million compared with a previous expectation of $100 million to $110 million.

“We will continue to manage the underlying businesses to produce meaningful cash returns, while maintaining a strong balance sheet and investing responsibly in our strategic initiatives,” Bell said.

GameStop said its net loss widened to $415.3 million, or $4.15 a share, from a loss of $24.9 million, or 24 cents a share, a year earlier. Excluding a $400.9 million impairment charge and other items, the company’s adjusted loss from continuing operations was 32 cents a share. Analysts expected a loss of 21 cents a share, according to a survey from Refinitiv.

It might be too soon to tell whether the earnings miss is a blow to Michael Burry’s thesis about GameStop. In August, the investor, who is most known for his calls on the subprime mortgage market that were featured in the book “The Big Short,” said he believed GameStop still had upside potential. Sony and Microsoft’s upcoming consoles will have physical optic drives, which will extend GameStop’s life significantly, he told Barron’s. He said the stock looks worse than it is. Shares of GameStop jumped more than 18% on that report.

Currently, the stock is trading at around $5 and has fallen almost 60% since January. The company has a market value of $521 million.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: jasmine wu
Keywords: news, cnbc, companies, cents, loss, compared, shares, company, share, miss, earnings, sales, tank, million, gamestop, cuts, gaming, forecast


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Stocks making the biggest moves after hours: GameStop, RH and more

That range is well below the $1.49 per share Wall Street had projected, according to a Refinitiv consensus estimate. Wall Street expected an adjusted loss of 21 cents a share and $1.34 billion in revenue, according to Refinitiv consensus estimates. Analysts had expected earnings of $2.70 a share and $698 million in revenue, according to Refinitiv consensus estimates. The company also raised its third-quarter forecast, saying it now expects adjusted earnings per share between $2.08 and $2.18. Wal


That range is well below the $1.49 per share Wall Street had projected, according to a Refinitiv consensus estimate. Wall Street expected an adjusted loss of 21 cents a share and $1.34 billion in revenue, according to Refinitiv consensus estimates. Analysts had expected earnings of $2.70 a share and $698 million in revenue, according to Refinitiv consensus estimates. The company also raised its third-quarter forecast, saying it now expects adjusted earnings per share between $2.08 and $2.18. Wal
Stocks making the biggest moves after hours: GameStop, RH and more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: ganesh setty, jasmine wu
Keywords: news, cnbc, companies, stocks, revenue, cents, expected, company, adjusted, making, share, earnings, moves, hours, refinitiv, consensus, million, gamestop, biggest


Stocks making the biggest moves after hours: GameStop, RH and more

Check out the companies making headlines after the bell:

Shares of GameStop plummeted more than 16% after the company cut its forecast and reported second quarter earnings that fell short of expectations. The company said it expects adjusted full-year earnings per share between $1.15 and $1.30. That range is well below the $1.49 per share Wall Street had projected, according to a Refinitiv consensus estimate. For the second quarter, the gaming retailer reported an adjusted loss per share of 32 cents and revenue of $1.29 billion. Wall Street expected an adjusted loss of 21 cents a share and $1.34 billion in revenue, according to Refinitiv consensus estimates.

Zscaler shares plunged nearly 20% following weak earnings guidance and a fourth-quarter earnings miss. The company posted an adjusted loss of 7 cents per share compared to expected profit of 1 cent per share. Revenue, however, came in better than expected at $86.1 million, compared with the $82.8 million forecast by analysts polled by Refinitiv.

Shares of RH, formerly known as Restoration Hardware, jumped as much as 6% after posting better-than-expected second-quarter earnings and revenue. The home-furnishing company reported adjusted earnings per share of $3.20 and $707 million in revenue. Analysts had expected earnings of $2.70 a share and $698 million in revenue, according to Refinitiv consensus estimates. The company also raised its third-quarter forecast, saying it now expects adjusted earnings per share between $2.08 and $2.18. Wall Street had projected third-quarter adjusted earnings of $1.82 per share, according to a Refinitiv consensus estimate.

The stock later lost those gains and was last seen trading about 3% below its closing price. As of their Tuesday close, RH shares have gained more than 32% so far this year.

Dave and Buster’s shares plunged 13% after the company lowered its outlook “in light of a competitive environment” and reported weaker-than-expected same-store sales. The company said comparable store sales declined 1.8% during the second quarter, compared with the 0.5% decline expected by analysts polled by Refinitiv. That news overshadowed earnings and revenue that topped expectations. The restaurant and entertainment company posted adjusted earnings per share of 90 cents and revenue of $345 million, compared to Refinitiv consensus estimates of 84 cents and $344 million, respectively.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: ganesh setty, jasmine wu
Keywords: news, cnbc, companies, stocks, revenue, cents, expected, company, adjusted, making, share, earnings, moves, hours, refinitiv, consensus, million, gamestop, biggest


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