Netflix paints a happy face on growing threat of U.S. competition

Netflix downplayed concerns about competition in its Q4 2019 earnings report, but subscriber numbers don’t lie. That’s true — Netflix added 8.8 million net subscribers in the fourth quarter, on par with the 8.8 million added last year and ahead of the company’s internal forecast of 7.6 million. In addition, Netflix added a Google search trends chart for “The Witcher,” Disney’s ​”The Mandalorian,” Amazon’s “Jack Ryan” ​ and Apple’s “​The Morning Show” to show that Netflix shows will still flouris


Netflix downplayed concerns about competition in its Q4 2019 earnings report, but subscriber numbers don’t lie.
That’s true — Netflix added 8.8 million net subscribers in the fourth quarter, on par with the 8.8 million added last year and ahead of the company’s internal forecast of 7.6 million.
In addition, Netflix added a Google search trends chart for “The Witcher,” Disney’s ​”The Mandalorian,” Amazon’s “Jack Ryan” ​ and Apple’s “​The Morning Show” to show that Netflix shows will still flouris
Netflix paints a happy face on growing threat of U.S. competition Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: alex sherman
Keywords: news, cnbc, companies, added, threat, 2019, subscribers, growing, netflix, face, company, search, competition, paints, net, happy, quarter, million


Netflix paints a happy face on growing threat of U.S. competition

CEO Of Netflix, Reed Hastings, attends the red carpet during the Netflix presentation party at the Invernadero del Palacio de Cristal de la Arganzuela on April 4, 2019 in Madrid, Spain.

Netflix downplayed concerns about competition in its Q4 2019 earnings report, but subscriber numbers don’t lie.

Netflix wrote that “despite the big debut of Disney+ and the launch of Apple TV+, our viewing per membership grew both globally and in the US on a year over year basis, consistent with recent quarters.”

That’s true — Netflix added 8.8 million net subscribers in the fourth quarter, on par with the 8.8 million added last year and ahead of the company’s internal forecast of 7.6 million.

But Netflix also acknowledged that growth in the U.S. and Canada is slowing rather dramatically. The company added just 550,000 net subscribers in the region this quarter, and just 420,000 in the U.S., down from 1.75 million in the same quarter one year ago. Netflix doesn’t shy away from the reason, citing “U.S. competitive launches” as one of the primary factors causing fewer people to sign up.

Netflix is also factoring in competition to its guidance, noting that “slightly elevated churn levels” in the U.S. led the company to project net adds of just 7 million globally for the first quarter of 2020, down from 9.6 million in the first quarter of 2019. Given that NBCUniversal’s Peacock and AT&T’s HBO Max haven’t debuted yet, it’s possible Netflix may be preparing for a world where the total number of U.S. subscribers starts to decline more consistently.

In addition, Netflix added a Google search trends chart for “The Witcher,” Disney’s ​”The Mandalorian,” Amazon’s “Jack Ryan” ​ and Apple’s “​The Morning Show” to show that Netflix shows will still flourish in the face of competition.

But even if you take searching for a term as a direct proxy for being popular, which is dubious, Netflix noted in a footnote that Disney+ is only in the U.S., New Zealand, Canada and Australia, while the other three services are global. And Amazon’s “Jack Ryan” isn’t a new show — it’s already in its second season. So, naturally, search interest may be lower. The overall comparison seems clunky and a little desperate.

The effect of competition on Netflix will be one of the biggest media storylines of the next few years. If Netflix can consistently beat back rivals, it should be able to sustain its lofty valuation over legacy media companies. If it can’t, well, that’s why Greenlight Capital’s David Einhorn increased his short position in the stock Tuesday.

Disclosure: Comcast owns NBCUniversal, parent company of CNBC.

WATCH: Netflix announces fourth-quarter earnings results


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: alex sherman
Keywords: news, cnbc, companies, added, threat, 2019, subscribers, growing, netflix, face, company, search, competition, paints, net, happy, quarter, million


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The world’s 2,153 billionaires have more wealth than 4.6 billion people combined, Oxfam says

The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, new research has claimed. In a study published Monday, international charity Oxfam called on governments to implement policies that may help to reduce wealth inequality. Amazon founder Jeff Bezos is currently the richest person in the world, according to Forbes, with a net worth of around $116.4 billion. The second wealthiest person on the planet is Bernard Arnault, a French billionaire who owns luxu


The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, new research has claimed.
In a study published Monday, international charity Oxfam called on governments to implement policies that may help to reduce wealth inequality.
Amazon founder Jeff Bezos is currently the richest person in the world, according to Forbes, with a net worth of around $116.4 billion.
The second wealthiest person on the planet is Bernard Arnault, a French billionaire who owns luxu
The world’s 2,153 billionaires have more wealth than 4.6 billion people combined, Oxfam says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: chloe taylor
Keywords: news, cnbc, companies, worlds, world, report, net, worth, richest, wealth, billion, combined, oxfam, sitting, person, billionaires, 2153


The world's 2,153 billionaires have more wealth than 4.6 billion people combined, Oxfam says

The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, new research has claimed.

In a study published Monday, international charity Oxfam called on governments to implement policies that may help to reduce wealth inequality.

The report comes as delegates gather in Davos, Switzerland, for the annual World Economic Forum conference.

“If everyone were to sit on their wealth piled up in $100 bills, most of humanity would be sitting on the floor,” its authors said.

“A middle-class person in a rich country would be sitting at the height of a chair. The world’s two richest men would be sitting in outer space.”

Amazon founder Jeff Bezos is currently the richest person in the world, according to Forbes, with a net worth of around $116.4 billion. The second wealthiest person on the planet is Bernard Arnault, a French billionaire who owns luxury goods group LVMH and has a net worth of $116 billion.

Oxfam’s report noted that someone who saved $10,000 a day since the construction of the Egyptian pyramids would still be 80% less wealthy than the world’s five richest billionaires.


Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: chloe taylor
Keywords: news, cnbc, companies, worlds, world, report, net, worth, richest, wealth, billion, combined, oxfam, sitting, person, billionaires, 2153


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Jeff Bezos says Amazon is donating $690,000 to Australian bush fire efforts

Jeff Bezos, founder and CEO of Amazon, pictured on September 13, 2018. Bloomberg | Getty ImagesBillionaire Amazon founder Jeff Bezos has announced his company will donate $690,000 donation to bush fire relief efforts in Australia. In an Instagram post on Sunday, Bezos pledged 1 million Australian dollars ($690,000) on behalf of the tech giant — an amount that has faced criticism by some on social media. “Amazon is donating 1 million AU dollars in needed provisions and services.” The figure was d


Jeff Bezos, founder and CEO of Amazon, pictured on September 13, 2018.
Bloomberg | Getty ImagesBillionaire Amazon founder Jeff Bezos has announced his company will donate $690,000 donation to bush fire relief efforts in Australia.
In an Instagram post on Sunday, Bezos pledged 1 million Australian dollars ($690,000) on behalf of the tech giant — an amount that has faced criticism by some on social media.
“Amazon is donating 1 million AU dollars in needed provisions and services.”
The figure was d
Jeff Bezos says Amazon is donating $690,000 to Australian bush fire efforts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-13  Authors: chloe taylor
Keywords: news, cnbc, companies, bush, efforts, worth, donating, dollars, australian, 690000, personal, million, founder, amazon, jeff, net, bezos


Jeff Bezos says Amazon is donating $690,000 to Australian bush fire efforts

Jeff Bezos, founder and CEO of Amazon, pictured on September 13, 2018. Bloomberg | Getty Images

Billionaire Amazon founder Jeff Bezos has announced his company will donate $690,000 donation to bush fire relief efforts in Australia. In an Instagram post on Sunday, Bezos pledged 1 million Australian dollars ($690,000) on behalf of the tech giant — an amount that has faced criticism by some on social media. “Our hearts go out to all Australians as they cope with these devastating bushfires,” Bezos said. “Amazon is donating 1 million AU dollars in needed provisions and services.”

The figure was derided by some online, with people comparing the sum with Bezos’ personal net worth. Bezos has a net worth of $116.7 billion, according to Forbes, and according to a 2019 Business Insider analysis was earning almost $9 million an hour in 2018. Amazon has a market capitalization of more than $930 billion. The conglomerate’s move to help tackle the bush fires was also compared to other high-profile contributions, with many pointing out that a string of celebrities with far less personal wealth than Bezos had donated more out of their own pockets.


Company: cnbc, Activity: cnbc, Date: 2020-01-13  Authors: chloe taylor
Keywords: news, cnbc, companies, bush, efforts, worth, donating, dollars, australian, 690000, personal, million, founder, amazon, jeff, net, bezos


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s where the jobs are — in one chart

CNBC studied the net changes by industry for December jobs based on data from the Labor Department contained in the employment report. “In terms of hiring, 145k is the lowest print in a few months, but it comes on the heels of extremely strong hiring in November,” he added. The health care and social assistance subsector (including child day care and family services) alone saw a net gain of 33,900 jobs after last month’s hefty 63,800 jobs. “Notable employment gains occurred in retail trade and h


CNBC studied the net changes by industry for December jobs based on data from the Labor Department contained in the employment report.
“In terms of hiring, 145k is the lowest print in a few months, but it comes on the heels of extremely strong hiring in November,” he added.
The health care and social assistance subsector (including child day care and family services) alone saw a net gain of 33,900 jobs after last month’s hefty 63,800 jobs.
“Notable employment gains occurred in retail trade and h
Here’s where the jobs are — in one chart Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: thomas franck
Keywords: news, cnbc, companies, chart, strong, jobs, net, labor, employment, retail, care, trade, 2019, heres, hiring


Here's where the jobs are — in one chart

While overall employment gains were slightly disappointing in December, there were strong job increases in the retail, hospitality and leisure services industries as employers looked to boost payrolls during the peak holiday season.

The government reported Friday that payrolls increased by 145,000, falling short of the 160,000 estimate economists polled by Dow Jones had forecast. The unemployment rate held steady at a low 3.5%, matching a 2019 level that at the time was the lowest since 1969.

CNBC studied the net changes by industry for December jobs based on data from the Labor Department contained in the employment report.

The retail and hospitality industries showed the strongest hiring numbers at the end of the holiday season, with each adding more than 40,000 net positions in December.

But some, like AllianceBernstein Senior Economist Eric Winograd, cautioned against reading too much into the stronger-than-usual retail numbers and instead focused on 2019 as a whole.

“To the extent that there is any weakness in hiring, it is concentrated in manufacturing, which continues to suffer from the trade war, and retail, which continues to suffer from the transition to online shopping,” Winograd wrote in an emailed statement.

“In terms of hiring, 145k is the lowest print in a few months, but it comes on the heels of extremely strong hiring in November,” he added. “Over any reasonable time frame, the labor market is still very strong, more than sufficient to absorb new entrants to the labor force and to support robust consumption.”

Continued strength in health care, too, further cemented its place as an employment juggernaut in the United States for the foreseeable future, thanks to changing demographics and advances in medical technology. The health care and social assistance subsector (including child day care and family services) alone saw a net gain of 33,900 jobs after last month’s hefty 63,800 jobs.

Something similar could be said of the manufacturing sector, which over the course of last year netted only 46,000 jobs after surging by 264,000 in 2018. The marked deceleration in the industry was capped by a net loss of 12,000 jobs in the final month of the year.

“Notable employment gains occurred in retail trade and health care, while mining lost jobs. In 2019, payroll employment growth totaled 2.1 million, compared with a gain of 2.7 million in 2018,” the government said in a press release.

“Employment in retail trade increased by 41,000, with job gains in clothing and accessories stores (+33,000) and in building material and garden supply stores (+7,000). For both industries, the December increase followed a decline in November. In 2019, retail trade employment changed little on net (+9,000), the second year of little employment change in the industry,” the Labor Department added.

Transportation and warehousing also posted a net loss for the month of December with a decline of 10,000. Like manufacturing, transportation and warehousing last year added only about 25% of its 2018 gain, up 57,000 versus 216,000 two years ago.


Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: thomas franck
Keywords: news, cnbc, companies, chart, strong, jobs, net, labor, employment, retail, care, trade, 2019, heres, hiring


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Investor flows show there’s no euphoria for this bull market, which means it could keep going

A trader works on the floor at the closing bell of the New York Stock Exchange, December 30, 2019. This suggests the bull market may still have some room to run. Investment flow data shows that individual investors were largely net sellers of equities in 2019, even as corporate buybacks helped push the market to record highs. The lack of widespread participation suggests that the market hasn’t hit a moment of euphoria or “blow-off top” that often precedes a pullback. The same data showed that th


A trader works on the floor at the closing bell of the New York Stock Exchange, December 30, 2019.
This suggests the bull market may still have some room to run.
Investment flow data shows that individual investors were largely net sellers of equities in 2019, even as corporate buybacks helped push the market to record highs.
The lack of widespread participation suggests that the market hasn’t hit a moment of euphoria or “blow-off top” that often precedes a pullback.
The same data showed that th
Investor flows show there’s no euphoria for this bull market, which means it could keep going Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-09  Authors: jesse pound
Keywords: news, cnbc, companies, highs, showed, theres, market, investor, means, flows, data, suggests, euphoria, clients, investors, going, wars, stock, bull, net


Investor flows show there's no euphoria for this bull market, which means it could keep going

A trader works on the floor at the closing bell of the New York Stock Exchange, December 30, 2019.

The stock market’s indomitable run to continued record highs despite fears about trade wars, real wars and a recession still has not been enough to lure most investors off the sidelines and into stocks.

This suggests the bull market may still have some room to run.

Investment flow data shows that individual investors were largely net sellers of equities in 2019, even as corporate buybacks helped push the market to record highs. The lack of widespread participation suggests that the market hasn’t hit a moment of euphoria or “blow-off top” that often precedes a pullback. That will only happen when these investors finally capitulate and flow back into stocks on fear of missing out on more gains.

With the market “trading at fresh all-time highs, the investor participation has been light, and the bear capitulation is likely to have legs,” J.P. Morgan strategists said in a note to clients Monday.

There appears to be no change in that pattern as the calendar turned to 2020. Data from Bank of America Securities showed a $550 million net outflow for the bank’s clients during the first week of the year. The same data showed that the clients were net buyers of equities in 2019, but that was driven almost entirely by corporate buybacks. Individual investors were the biggest net sellers.


Company: cnbc, Activity: cnbc, Date: 2020-01-09  Authors: jesse pound
Keywords: news, cnbc, companies, highs, showed, theres, market, investor, means, flows, data, suggests, euphoria, clients, investors, going, wars, stock, bull, net


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

3 reasons why gold could rally for the rest of the year, according to commodity strategists

A combination of continued geopolitical risk, a weaker dollar and negative real rates would continue gold’s rally through 2020, commodity strategists anticipate. Gold prices rallied to a seven-year high after tensions escalated in the Middle East following the U.S. killing of top Iranian military commander Qasem Soleimani, as investors flocked into typically safe assets, with oil and bond prices also surging. As well as geopolitical risk, however, macro factors are also boosting gold’s appeal as


A combination of continued geopolitical risk, a weaker dollar and negative real rates would continue gold’s rally through 2020, commodity strategists anticipate.
Gold prices rallied to a seven-year high after tensions escalated in the Middle East following the U.S. killing of top Iranian military commander Qasem Soleimani, as investors flocked into typically safe assets, with oil and bond prices also surging.
As well as geopolitical risk, however, macro factors are also boosting gold’s appeal as
3 reasons why gold could rally for the rest of the year, according to commodity strategists Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: elliot smith
Keywords: news, cnbc, companies, industrial, rally, net, reasons, long, according, negative, rest, interest, strategists, prices, gold, commodity, note, factors


3 reasons why gold could rally for the rest of the year, according to commodity strategists

A combination of continued geopolitical risk, a weaker dollar and negative real rates would continue gold’s rally through 2020, commodity strategists anticipate. However, there is some disagreement over the extent to which geopolitical factors will continue to be supportive for the precious metal. Gold prices rallied to a seven-year high after tensions escalated in the Middle East following the U.S. killing of top Iranian military commander Qasem Soleimani, as investors flocked into typically safe assets, with oil and bond prices also surging. As well as geopolitical risk, however, macro factors are also boosting gold’s appeal as a hedge against uncertainty. A softened dollar and a persistent negative rate environment are chief among these gold-supportive trends. Since gold is denominated in dollars internationally, weakness in the greenback pushes up gold prices and vice versa. Meanwhile negative real interest rates, in which the inflation rate is higher than the nominal interest, means that creditors will be losing money and are therefore more likely to park their money in gold.

Push toward $1,600

In a note published Tuesday, UBS commodity strategists Joni Teves and James Malcolm said their base case is for gold to trade through and average around $1,600 per ounce this year on the back of the aforementioned three factors. Spot gold was hovering at around $1,566 during European afternoon trade on Tuesday. Gold is also stronger against other currencies, with anecdotal information suggesting that there is “some producer interest to take advantage of the gold price move in local currencies,” Teves and Malcolm suggested. “Producer selling might help rein in the rally in the near term, but we do not expect it to derail the broader uptrend especially if macro factors continue to move in gold’s favor. On the flip side, softer (first quarter) data in the U.S. – as our economists expect – would be a tailwind for gold,” the note added.

Colin Hamilton, managing director of commodities research at BMO Capital Markets, told CNBC on Tuesday that January and February are typically strong months due to a combination of physical demand in China ahead of the Lunar New Year holidays and a rebalancing of investor portfolios, particularly ETFs (exchange-traded funds). “Coming out of Chinese new year will be a very important time, because that’s when we will see the industrial economy measures, because we have actually seen a decent rally in the industrial economy and industrial equities for the past two or three months, probably a little bit ahead of fundamentals,” Hamilton told CNBC’s “Street Signs Europe.” “Now it’s a case of whether we see the data coming out of China, which tends to lead the industrial cycle, back that up.” Hamilton also suggested that central bank purchases of gold could provide further momentum, particularly with central banks around the world looking to de-dollarize. “There’s still going to be Kazakhstan, Russia, China, who are still going to be net purchasers of gold — that’s kind of like an annuity for the gold market,” he said.

Delayed data from the U.S. Commodity Futures Trading Commission (CFTC) shows that speculators bought 20,251 lots of COMEX gold over the last reporting week, resulting in a net long position of 263,170 lots as of last Tuesday, the highest levels since September. ING Head of Commodities Strategy Warren Patterson highlighted in a note Tuesday that the current speculative net long will likely be significantly larger given the flock to safe havens since Thursday night’s killing of Soleimani. Long positions are where traders bet the price will rise, rather than fall.

Circumstantial considerations


Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: elliot smith
Keywords: news, cnbc, companies, industrial, rally, net, reasons, long, according, negative, rest, interest, strategists, prices, gold, commodity, note, factors


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Morgan Stanley: Don’t assume a strong US economy automatically means a Trump reelection in 2020

Investors should not assume that President Donald Trump will stay in the White House just because of the strong U.S. economy, according to an analysis from Morgan Stanley. “It’s entirely possible that it’s a coincidence,” he offered, referring to any such correlation between reelection and the economy. Historically, presidents who ran for reelection while the economy was booming, including Barack Obama, George W. Bush, Bill Clinton and Ronald Reagan, kept their jobs. However, Zezas said Trump is


Investors should not assume that President Donald Trump will stay in the White House just because of the strong U.S. economy, according to an analysis from Morgan Stanley.
“It’s entirely possible that it’s a coincidence,” he offered, referring to any such correlation between reelection and the economy.
Historically, presidents who ran for reelection while the economy was booming, including Barack Obama, George W. Bush, Bill Clinton and Ronald Reagan, kept their jobs.
However, Zezas said Trump is
Morgan Stanley: Don’t assume a strong US economy automatically means a Trump reelection in 2020 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, dont, net, assume, economy, trump, presidents, good, automatically, stanley, zezas, approval, disapproval, morgan, wall, strong, reelection, means


Morgan Stanley: Don't assume a strong US economy automatically means a Trump reelection in 2020

Investors should not assume that President Donald Trump will stay in the White House just because of the strong U.S. economy, according to an analysis from Morgan Stanley.

Michael Zezas, head of U.S. public policy strategy at the Wall Street firm, acknowledged Tuesday that “as far back as we have reliable data” incumbent presidents with “good economies are reelected.”

However, Zezas argued on “Squawk Box” that the sample size of just 45 presidents is small. “It’s entirely possible that it’s a coincidence,” he offered, referring to any such correlation between reelection and the economy.

Historically, presidents who ran for reelection while the economy was booming, including Barack Obama, George W. Bush, Bill Clinton and Ronald Reagan, kept their jobs. Meanwhile, Presidents George H.W. Bush, Jimmy Carter, Gerald Ford and Herbert Hoover lost their reelection bids amid U.S. economic struggles.

The economy, which was on fire in 2018, has been cooling lately, under the weight of the U.S.-China trade war.

But despite the tariffs, now on hold as a phase one deal awaits signing, American consumers have generally weathered the storm. The nation’s 3.5% unemployment rate in November matched 50-year lows.

The Federal Reserve, despite Trump’s frequent bashing and calls for lower interest rates, also delivered three rate cuts in 2019 to inoculate the U.S. economy from the worldwide slowdown.

The stock market, as measured by the S&P 500, since Trump’s 2016 election victory was up more than 50% as of Wall Street’s close on Monday.

However, Zezas said Trump is missing something that those past good-economy incumbent presidents had: Stronger job approval than disapproval. “All of those that had good economies also had net positive approval rating.”

That makes Trump a standout.

“Now we have a president with a good economy who’s never had a net positive approval rating,” Zezas added, referring to the difference between the approval and disapproval ratings.

Trump’s approval rating hovers around 45%, according to a data compilation from RealClearPolitics, with disapproval at more than 52%. That translates into a net negative spread of about 7%.


Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, dont, net, assume, economy, trump, presidents, good, automatically, stanley, zezas, approval, disapproval, morgan, wall, strong, reelection, means


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Bill Gates: My $109 billion net worth shows the economy is not fair

I think the rich should pay more than they currently do, and that includes Melinda and me,” Gates wrote, referring to his wife. “The distance between top and bottom incomes in the United States is much greater than it was 50 years ago,” Gates wrote in a blog post reflecting on 2019 published Tuesday. Bill Gates — the second richest person in the world with a current net worth of $108.8 billion , according to Forbes — says his extreme wealth is not fair. Many have joined the Giving Pledge, promis


I think the rich should pay more than they currently do, and that includes Melinda and me,” Gates wrote, referring to his wife.
“The distance between top and bottom incomes in the United States is much greater than it was 50 years ago,” Gates wrote in a blog post reflecting on 2019 published Tuesday.
Bill Gates — the second richest person in the world with a current net worth of $108.8 billion , according to Forbes — says his extreme wealth is not fair.
Many have joined the Giving Pledge, promis
Bill Gates: My $109 billion net worth shows the economy is not fair Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-03  Authors: catherine clifford
Keywords: news, cnbc, companies, fair, 109, economy, billion, pay, gates, worth, taxes, shows, bill, going, work, net, tax, buffett, cuban, wrote, wealth


Bill Gates: My $109 billion net worth shows the economy is not fair

“I don’t see any reason to favor wealth over work the way we do today,” he wrote. It’s “the clearest evidence I’ve seen that the system isn’t fair,” he said.

Specifically, he said there should be a higher capital gains tax (a tax on money made on investments), which would disproportionately affect the wealthy. None of the richest people in the world have made their fortunes solely through a salaried job, and for that reason Gates believes the government “should shift more of the tax burden onto capital” rather than labor.

“I’m for a tax system in which, if you have more money, you pay a higher percentage in taxes. I think the rich should pay more than they currently do, and that includes Melinda and me,” Gates wrote, referring to his wife.

To solve the problem, Gates said the U.S. government should raise taxes that affect the wealthy.

“A few people end up with a great deal—I’ve been disproportionately rewarded for the work I’ve done—while many others who work just as hard struggle to get by,” he wrote.

“The distance between top and bottom incomes in the United States is much greater than it was 50 years ago,” Gates wrote in a blog post reflecting on 2019 published Tuesday. (Indeed, American income inequality is at its highest level in decades, according to U.S. Census Bureau’s Gini index .)

Bill Gates — the second richest person in the world with a current net worth of $108.8 billion , according to Forbes — says his extreme wealth is not fair.

Billionaire tech entrepreneur and investor Mark Cuban has also highlighted how the difference between the investor class and paid labor is a factor in the wealth gap.

“If someone is only going to be paid by the hour…they’re always going to fall behind,” Cuban told Recode Decode in May. “And income distribution is … [the] disparity is going to get wider and wider.”

While Cuban has called paying taxes “patriotic,” he also suggests founders and owners should distribute stock in the company to employees to bring them into the investor class.

“We as entrepreneurs have got to make a point to give stock to everybody that works for us. Period. End of story. No exceptions, because that’s the only way people are going to get any type of equity appreciation.”

Cuban said he did just that with online streaming service Broadcast.com, which Cuban co-founded and sold to Yahoo in 1999 for almost $6 billion in stock. “Three hundred out of 330 [Broadcast.com] employees became millionaires” at the time of its sale, Cuban previously told CNBC Make It.

Gates also said in Tuesday’s blog post that the U.S. should have a higher estate tax, which would affect the rich.

“A dynastic system where you can pass vast wealth along to your children is not good for anyone; the next generation doesn’t end up with the same incentive to work hard and contribute to the economy,” Gates said.

Gates said it’s one of the reasons he co-founded The Giving Pledge with Warren Buffett (who has also said the rich should pay higher taxes). The Giving Pledge invites billionaires to commit to giving away the majority of their money to charity, and both the Gates and Buffett have made the pledge.

“I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy,” Buffett wrote in The New York Times in 2011.

“Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering,” Buffett added. “My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.”

Fundamentally, whether through taxes or philanthropy, extraordinary wealth needs to be reinvested in society, according to Gates.

“Melinda and I believe that driving progress is wealth’s highest purpose,” Gates wrote in Tuesday’s blog post. “Our wealth comes with an obligation to give back to society, and in 2020, we’re committed to continue living up to that obligation: through our taxes, through our foundation, and through our personal giving.”

See also:

Mark Cuban: Workers paid by the hour are ‘always going to fall behind,’ making wealth inequality worse

What billionaires said about wealth inequality and capitalism in 2019

Billionaire Warren Buffett says ‘the real problem’ with the US economy is people like him


Company: cnbc, Activity: cnbc, Date: 2020-01-03  Authors: catherine clifford
Keywords: news, cnbc, companies, fair, 109, economy, billion, pay, gates, worth, taxes, shows, bill, going, work, net, tax, buffett, cuban, wrote, wealth


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

How much richer the top 10 billionaires are now compared to the beginning of the decade

Here’s a look at the net worth of the 10 richest people in the world, as ranked Tuesday, Dec. 24, according to Forbes’ Real Time Billionaires List , compared to the same billionaires’ net worth on Aug. 25, 2010, the date Forbes locked in 2010’s ranking of the wealthiest billionaires. In the last 10 years, the rich have gotten a whole lot richer. Chair of Indian oil and gas company Reliance Industries2010 net worth: $29 billion2019 net worth: $59.7 billionHow much richer: $30.7 billionIn 2010, th


Here’s a look at the net worth of the 10 richest people in the world, as ranked Tuesday, Dec. 24, according to Forbes’ Real Time Billionaires List , compared to the same billionaires’ net worth on Aug. 25, 2010, the date Forbes locked in 2010’s ranking of the wealthiest billionaires.
In the last 10 years, the rich have gotten a whole lot richer.
Chair of Indian oil and gas company Reliance Industries2010 net worth: $29 billion2019 net worth: $59.7 billionHow much richer: $30.7 billionIn 2010, th
How much richer the top 10 billionaires are now compared to the beginning of the decade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-24  Authors: catherine clifford
Keywords: news, cnbc, companies, richer, worlds, billionaires, net, billion, report, compared, worth, decade, beginning, richest, wealth, poorest


How much richer the top 10 billionaires are now compared to the beginning of the decade

Here’s a look at the net worth of the 10 richest people in the world, as ranked Tuesday, Dec. 24, according to Forbes’ Real Time Billionaires List , compared to the same billionaires’ net worth on Aug. 25, 2010, the date Forbes locked in 2010’s ranking of the wealthiest billionaires.

In the last 10 years, the rich have gotten a whole lot richer.

Chair of Indian oil and gas company Reliance Industries

2010 net worth: $29 billion

2019 net worth: $59.7 billion

How much richer: $30.7 billion

In 2010, the 10 richest people in the world had total wealth of $296.8 billion as compared to $822.5 billion now.

For context, in 2010, global wealth totaled $200 trillion as compared to $360.6 trillion in 2019, according to an October report on global wealth from financial services company Credit Suisse.

Today, wealth inequality between the world’s richest and poorest continues to grow. According to an Oxfam report published in January, the world’s wealthiest 26 individuals had the same amount of wealth as the poorest half of the population in 2018, the latest figures available. During the same period, the wealth of the world’s billionaires increased by $900 billion ($2.5 billion per day), while the wealth of the poorest half of the population (3.8 billion people) fell by 11%, the Oxfam report found.

In 2019, Bernie Sanders said billionaires should not exist, and billionaires themselves, from Gates to Zuckerberg to Ray Dalio acknowledged that something must be done about the wealth gap.


Company: cnbc, Activity: cnbc, Date: 2019-12-24  Authors: catherine clifford
Keywords: news, cnbc, companies, richer, worlds, billionaires, net, billion, report, compared, worth, decade, beginning, richest, wealth, poorest


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Credit card debt is worse for those with high income

Overall, Americans have $830 billion in credit card debt as of the second quarter of 2019, a 6% jump year over year, according to the most recent report from Experian. And U.S. adults with a net worth of $100,000 or more are more likely to carry credit card debt than those with fewer assets, Bankrate said. “It doesn’t make sense to finance a fancy lifestyle with credit card debt,” Rossman said. More from Personal Finance:Here’s one way to pay less to your credit card company4 ways to avoid the o


Overall, Americans have $830 billion in credit card debt as of the second quarter of 2019, a 6% jump year over year, according to the most recent report from Experian.
And U.S. adults with a net worth of $100,000 or more are more likely to carry credit card debt than those with fewer assets, Bankrate said.
“It doesn’t make sense to finance a fancy lifestyle with credit card debt,” Rossman said.
More from Personal Finance:Here’s one way to pay less to your credit card company4 ways to avoid the o
Credit card debt is worse for those with high income Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-18  Authors: jessica dickler, annie nova
Keywords: news, cnbc, companies, card, credit, experian, worse, likely, carry, worth, ways, net, income, high, rossman, debt


Credit card debt is worse for those with high income

Credit cards are a growing problem for everyone.

Overall, Americans have $830 billion in credit card debt as of the second quarter of 2019, a 6% jump year over year, according to the most recent report from Experian. It is the second-fastest-growing type of debt, after personal loans, Experian found.

The average American now carries a credit card balance of nearly $6,200, according to Experian, also up from a year earlier.

At these levels, fewer cardholders can pay their balances in full at the end of each month.

And U.S. adults with a net worth of $100,000 or more are more likely to carry credit card debt than those with fewer assets, Bankrate said.

In fact, those with a net worth between $100,000 and $199,999 are the most likely to carry credit card debt, followed by people with a net worth between $200,000 and $1 million. Adults worth more than $1 million were the least likely to carry such high-interest debt, Bankrate found.

Ted Rossman, industry analyst for CreditCards.com, faulted “lifestyle creep.” Today’s “keeping up with the Joneses” mentality is hard to resist, several other studies have also found.

“It doesn’t make sense to finance a fancy lifestyle with credit card debt,” Rossman said. “That’s costing you a lot of money over time and risking your financial stability.”

More from Personal Finance:

Here’s one way to pay less to your credit card company

4 ways to avoid the overspending trap this holiday

Your credit card debt could be making you sick

Despite 10 years of economic growth, consumers are still just barely keeping up, he said. “It’s a warning sign.”

While household income has grown over the past decade, it has failed to keep up with the increased cost of living over the same period.

To bridge the gap, more Americans rely on credit cards as one of the most expensive ways to borrow. Credit card rates now stand at 17.4%, on average, only down slightly from a record high of 17.85%

Even a mild recession coupled with very high card rates could cause a lot of pain for card debtors, Rossman said.


Company: cnbc, Activity: cnbc, Date: 2019-12-18  Authors: jessica dickler, annie nova
Keywords: news, cnbc, companies, card, credit, experian, worse, likely, carry, worth, ways, net, income, high, rossman, debt


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post