WeWork reportedly expected to lay off 2,000 workers as early as this week

WeWork is expected to lay off at least 2,000 people, about 13% of its staff, as soon as this week, the Guardian newspaper reported. WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting more of the company’s 15,000 person workforce could be sacked. The Information reported in September that executives and bankers have discussed cutting up to a third of those workers. Employees also told the Guardian that little to no work is getting done at the company and new


WeWork is expected to lay off at least 2,000 people, about 13% of its staff, as soon as this week, the Guardian newspaper reported. WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting more of the company’s 15,000 person workforce could be sacked. The Information reported in September that executives and bankers have discussed cutting up to a third of those workers. Employees also told the Guardian that little to no work is getting done at the company and new
WeWork reportedly expected to lay off 2,000 workers as early as this week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, reported, startup, week, expected, guardian, 2000, staff, report, softbank, told, early, neumann, company, workers, reportedly, wework, lay


WeWork reportedly expected to lay off 2,000 workers as early as this week

WeWork is expected to lay off at least 2,000 people, about 13% of its staff, as soon as this week, the Guardian newspaper reported.

WeWork staff told the Guardian that they believe the cuts will not stop there, suggesting more of the company’s 15,000 person workforce could be sacked. The Information reported in September that executives and bankers have discussed cutting up to a third of those workers. The embattled start-up is attempting to turn its fortunes around with painful cost reduction measures.

Employees also told the Guardian that little to no work is getting done at the company and new projects have been put on hold.

WeWork declined to comment to the Guardian. Representatives for the company did not immediately respond to CNBC’s request for additional comment.

Last month, the start-up pulled the plug on plans to go public. Its much-anticipated IPO prospectus in August revealed a massive $900 million loss in the first six months of 2019 and drew skepticism over its corporate governance. WeWork had a private market valuation of about $47 billion but its potential value in the public market had been slashed significantly.

There has also been a showdown between former CEO Adam Neumann and SoftBank chief Masayoshi Son, who has invested billions into the start-up. Neumann stepped down last month. It was also reported that SoftBank has readied a financing package to take control of the company and further sideline Neumann, who is also a co-founder.

WeWork rents out office spaces to start-ups, freelancers and enterprises by investing in real estate in some of the most expensive markets around the world. It makes money back over time as companies and individuals pay their rent or membership fees.

Read more about the Guardian’s report on WeWork’s plans to sack 2,000 staff here.

— CNBC’s Alex Sherman and Lauren Feiner contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, reported, startup, week, expected, guardian, 2000, staff, report, softbank, told, early, neumann, company, workers, reportedly, wework, lay


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United Auto Workers summons local union leaders to Detroit as GM strike enters fifth week

DETROIT – The United Auto Workers has summoned local union leaders to Detroit on Thursday for an update on its negotiations with General Motors. The union has traditionally done this when a tentative agreement has been reached or, as was the case a month ago, to discuss and vote on other actions such as a strike. GM spokesman David Barnas confirmed talks are “ongoing,” but declined to comment on details of the discussions. If a tentative agreement is not reached by the meeting at 10:30 a.m. Thur


DETROIT – The United Auto Workers has summoned local union leaders to Detroit on Thursday for an update on its negotiations with General Motors. The union has traditionally done this when a tentative agreement has been reached or, as was the case a month ago, to discuss and vote on other actions such as a strike. GM spokesman David Barnas confirmed talks are “ongoing,” but declined to comment on details of the discussions. If a tentative agreement is not reached by the meeting at 10:30 a.m. Thur
United Auto Workers summons local union leaders to Detroit as GM strike enters fifth week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: michael wayland
Keywords: news, cnbc, companies, tentative, fifth, united, week, update, strike, leaders, summons, discussions, agreement, local, union, talks, spokesman, negotiations, workers


United Auto Workers summons local union leaders to Detroit as GM strike enters fifth week

DETROIT – The United Auto Workers has summoned local union leaders to Detroit on Thursday for an update on its negotiations with General Motors.

The union has traditionally done this when a tentative agreement has been reached or, as was the case a month ago, to discuss and vote on other actions such as a strike.

A letter to local union leaders Monday night said the agenda for the meeting included a “contract update and any other agenda items to be determined,” leaving the door open for talks to continue to potentially reach a tentative agreement ahead of the meeting.

UAW spokesman Brian Rothenberg declined to comment on the letter. GM spokesman David Barnas confirmed talks are “ongoing,” but declined to comment on details of the discussions. Negotiations between the two sides ended Monday evening and are expected to resume Tuesday morning.

If a tentative agreement is not reached by the meeting at 10:30 a.m. Thursday, the union could update local leaders about the discussions in an attempt to determine what to do next.

“My guess is if there is no tentative agreement by Thursday, they will review the status of bargaining with the council and then try to obtain a consensus with respect to next steps,” said Colin Lightbody, a labor consultant and longtime negotiator for Fiat Chrysler.

Options for the union moving forward could include:

remaining on strike and continuing negotiations with GM;

discussing and voting on terms for remaining outstanding issues;

moving discussions to another automaker if negotiations have stalled, among others.

The summons of local UAW presidents and chairpersons comes following the two sides countering back and forth with proposals. The union on Friday said it had countered an offer from GM.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: michael wayland
Keywords: news, cnbc, companies, tentative, fifth, united, week, update, strike, leaders, summons, discussions, agreement, local, union, talks, spokesman, negotiations, workers


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California governor demands PG&E accountability for mismanaging power shutoffs

Restaurant owner Emily Schiffman checks her phone behind a candle-lit bar at Reel and Brand in Sonoma, California, on October 9, 2019, during a planned power outage by the Pacific Gas & Electric (PG&E) utility company. California Governor Gavin Newsom said on Monday that utility Pacific Gas and Electric should be held accountable for mismanaging last week’s widespread power shutoffs and urged the company to provide credits or rebates to affected customers. Separately, the California Public Utili


Restaurant owner Emily Schiffman checks her phone behind a candle-lit bar at Reel and Brand in Sonoma, California, on October 9, 2019, during a planned power outage by the Pacific Gas & Electric (PG&E) utility company. California Governor Gavin Newsom said on Monday that utility Pacific Gas and Electric should be held accountable for mismanaging last week’s widespread power shutoffs and urged the company to provide credits or rebates to affected customers. Separately, the California Public Utili
California governor demands PG&E accountability for mismanaging power shutoffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, batjer, urged, accountability, governor, week, utility, pge, affected, power, shutoffs, commission, corrective, mismanaging, demands, california


California governor demands PG&E accountability for mismanaging power shutoffs

Restaurant owner Emily Schiffman checks her phone behind a candle-lit bar at Reel and Brand in Sonoma, California, on October 9, 2019, during a planned power outage by the Pacific Gas & Electric (PG&E) utility company.

California Governor Gavin Newsom said on Monday that utility Pacific Gas and Electric should be held accountable for mismanaging last week’s widespread power shutoffs and urged the company to provide credits or rebates to affected customers.

Separately, the California Public Utility Commission ordered corrective steps by PG&E, the state’s largest investor-owned

utility, while summoning eight of its top executives to an emergency meeting on Friday.

The utility, a unit of PG&E, cut off electricity to more than 730,000 homes and workplaces in northern California last week in a bid to reduce wildfire risks posed by extremely windy, dry weather.

The precautionary shutdown, unprecedented in its scope, has been widely criticized as being haphazardly conducted on too large a scale, with insufficient advance notice to affected customers.

On Thursday, the governor said the power outage followed years of mismanagement by the utility and branded its handling as “unacceptable.”

Chief Executive Bill Johnson publicly acknowledged that day that PG&E had fallen short in its preparations for the outage.

In response to state officials’ latest moves, Johnson again acknowledged room for improvement while defending the

broad-scale power cutoff as “the right decision.”

He added that there “were no catastrophic wildfires started” last week in the utility’s service areas.

Newsom said he had sent a letter to Public Utilities Commission President Marybel Batjer confirming that the agency

will conduct a comprehensive inquiry and review of PG&E’s planning, implementation and decision-making process failures.

“Californians should not pay the price for decades of PG&E’s greed and neglect,” Newsom said. “We will continue to hold PG&E accountable to make radical changes — prioritizing the safety of Californians and modernizing its equipment.”

Newsom also urged the company to provide affected customers an automatic credit or rebate of $100 per residential customer and $250 per small business as compensation.

Separately, Batjer sent PG&E executives an eight-page letter on Monday directing the utility outlining seven “major areas

where immediate corrective actions are required,” the commission said in a statement.

“Failures in execution, combined with the magnitude of this (power shutdown) event, created an unacceptable situation that should never be repeated,” Batjer wrote.

“Loss of power is not a mere inconvenience — it endangers lives and property, especially those individuals who are reliant

on power for medical reasons.”

Several of the corrective actions ordered by the commission dealt with website crashes and an overwhelming surge in call center activity the utility experienced during the shutdown.

PG&E filed for bankruptcy in January 2019, citing potential civil liabilities in excess of $30 billion from major wildfires

linked to its transmission wires and other equipment.


Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, batjer, urged, accountability, governor, week, utility, pge, affected, power, shutoffs, commission, corrective, mismanaging, demands, california


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LeBron James says Houston Rockets’ GM was not ‘educated’ on Hong Kong situation when he tweeted

NBA superstar LeBron James criticized the general manager of Houston Rockets for not being “educated on the situation” when he tweeted in support of the Hong Kong anti-government protests. But that criticism sparked backlash against James, with one U.S. lawmaker slamming the LA Lakers star for “putting profits over human rights.” Rockets GM Daryl Morey set off a spiral of events earlier this month after his tweet drew widespread anger in China. Tencent, which owns the digital streaming rights fo


NBA superstar LeBron James criticized the general manager of Houston Rockets for not being “educated on the situation” when he tweeted in support of the Hong Kong anti-government protests. But that criticism sparked backlash against James, with one U.S. lawmaker slamming the LA Lakers star for “putting profits over human rights.” Rockets GM Daryl Morey set off a spiral of events earlier this month after his tweet drew widespread anger in China. Tencent, which owns the digital streaming rights fo
LeBron James says Houston Rockets’ GM was not ‘educated’ on Hong Kong situation when he tweeted Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: arjun kharpal
Keywords: news, cnbc, companies, lebron, nba, youre, games, week, lakers, houston, situation, hong, james, kong, rockets, thinking, educated, morey, tweeted, preseason, china


LeBron James says Houston Rockets' GM was not 'educated' on Hong Kong situation when he tweeted

LeBron James of Los Angeles Lakers (R) takes a shot while being guarded by Theo Pinson of the Brooklyn Nets (L) during their National Basketball Association (NBA) pre-season match at the Mercedes Benz Arena in Shanghai on October 10, 2019.

NBA superstar LeBron James criticized the general manager of Houston Rockets for not being “educated on the situation” when he tweeted in support of the Hong Kong anti-government protests.

But that criticism sparked backlash against James, with one U.S. lawmaker slamming the LA Lakers star for “putting profits over human rights.”

Rockets GM Daryl Morey set off a spiral of events earlier this month after his tweet drew widespread anger in China. Even though the post was swiftly deleted, sponsors cut ties with the National Basketball Association while the league came under fire for appearing to give in to censorship from Beijing.

“We all talk about this freedom of speech, yes, we all do have freedom of speech. But at times, there are ramifications for the negative that can happen when you’re not thinking about others and you’re only thinking about yourself,” James told reporters ahead of a game against Golden State.

“I don’t want to get into a word or sentence feud with … with Daryl Morey. But I believe he wasn’t educated on the situation at hand and he spoke.”

After making those remarks, James took to Twitter to clarify his statements saying that Morey had no “consideration for the consequences and ramifications of the tweet” and he could have “waited a week to send it.”

Last week, the Lakers played against the Brooklyn Nets in two exhibition games in China — but those games were not available for viewing in China as state-run television network CCTV suspended the current broadcast arrangements for the NBA’s preseason games in China. Tencent, which owns the digital streaming rights for NBA in China, also “temporarily” suspended the preseason broadcast arrangements.

NBA Commissioner Adam Silver eventually came out to support Morey but players have been largely quiet on the issue.

The comments by James drew sharp criticism from some U.S. lawmakers. Senator Rick Scott, R-Fla. accused James of “putting profits over human rights.”

Meanwhile, Sen. Ben Sasse, R-Neb., said the NBA star was “parroting communist propaganda.”


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: arjun kharpal
Keywords: news, cnbc, companies, lebron, nba, youre, games, week, lakers, houston, situation, hong, james, kong, rockets, thinking, educated, morey, tweeted, preseason, china


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Wells Fargo profit slides amid the bank’s restructuring, with new CEO taking over next week

Shares of Wells Fargo initially slipped in trading but later rose 1.4% from its previous close of $49.27 a share. Scharf, formerly the chairman and CEO of BNY Mellon, will take over for Tim Sloan at Wells Fargo on Monday. The nation’s fourth-largest bank, Wells Fargo has been mired in restructuring and regulatory scrutiny since 2016. Wells Fargo reported a $1.6 billion litigation charge during the third quarter, citing the continued ramifications from the sales scandal. “We have more work ahead,


Shares of Wells Fargo initially slipped in trading but later rose 1.4% from its previous close of $49.27 a share. Scharf, formerly the chairman and CEO of BNY Mellon, will take over for Tim Sloan at Wells Fargo on Monday. The nation’s fourth-largest bank, Wells Fargo has been mired in restructuring and regulatory scrutiny since 2016. Wells Fargo reported a $1.6 billion litigation charge during the third quarter, citing the continued ramifications from the sales scandal. “We have more work ahead,
Wells Fargo profit slides amid the bank’s restructuring, with new CEO taking over next week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: michael sheetz, hugh son
Keywords: news, cnbc, companies, quarter, bank, reported, wells, restructuring, billion, share, profit, slides, week, amid, ceo, banks, taking, fargo


Wells Fargo profit slides amid the bank's restructuring, with new CEO taking over next week

Wells Fargo on Tuesday reported third-quarter earnings slightly below expectations, as a key measure of the bank’s profitability slide more as the troubled company restructures.

The bank reported net income of $4.6 billion in the quarter, down 23% from a year earlier. Wells Fargo’s net interest income, a critical part of bank profits, was just below estimates at $11.63 billion. Net interest margin dropped to 2.66%, down from 2.94% for the quarter a year ago.

Here’s how the company did, compared with what Wall Street expected:

Earnings : $1.07 a share adjusted vs. $1.15 a share expected by analysts surveyed by Refinitiv.

: $1.07 a share adjusted vs. $1.15 a share expected by analysts surveyed by Refinitiv. Revenue: $22.01 billion vs. 21.19 billion expected by analysts surveyed by Refinitiv.

Shares of Wells Fargo initially slipped in trading but later rose 1.4% from its previous close of $49.27 a share. The bank’s stock was up 7% for this year before the report.

Last month, the bank’s board of directors named Charles Scharf as CEO and president. Scharf, formerly the chairman and CEO of BNY Mellon, will take over for Tim Sloan at Wells Fargo on Monday.

The nation’s fourth-largest bank, Wells Fargo has been mired in restructuring and regulatory scrutiny since 2016. Under former CEO John Stumpf, Wells Fargo employees had created millions of fake bank accounts to meet sales quotas. With the bank’s reputation damaged, Sloan had taken the reins from Stumpf. But Sloan resigned abruptly in March.

Wells Fargo reported a $1.6 billion litigation charge during the third quarter, citing the continued ramifications from the sales scandal.

“We have more work ahead, but I’m confident that our focused efforts and the fundamental strengths of Wells Fargo will continue to enable us to achieve success,” Wells Fargo interim CEO Allen Parker said in a statement Tuesday.

In 2018, the Federal Reserve capped Wells Fargo’s asset growth under $1.95 trillion, after the bank discovered further problems with how it treated customers. The cap will stay in place through the end of the year, in a rare move the central bank took to push Wells Fargo to fix its risk management problems.

Wells Fargo’s loan balances at the end of September totaled $954.9 billion, up $5 billion from the previous quarter. While the bank reported unchanged commercial loans, consumer loans made up the $5 billion increase, driven by more family real estate mortgages as well as more credit card and auto loans.

Correction: An earlier version misstated the adjusted third-quarter earnings. The correct amount was $1.07 a share.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: michael sheetz, hugh son
Keywords: news, cnbc, companies, quarter, bank, reported, wells, restructuring, billion, share, profit, slides, week, amid, ceo, banks, taking, fargo


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Trump lawyer Giuliani was paid $500,000 to consult on indicted associate’s firm

President Donald Trump’s personal attorney, Rudy Giuliani, was paid $500,000 for work he did for a company co-founded by the Ukrainian-American businessman arrested last week on campaign finance charges, Giuliani told Reuters on Monday. Giuliani said Parnas’ company, Boca Raton, Florida-based Fraud Guarantee, whose website says it aims to help clients “reduce and mitigate fraud,” engaged Giuliani Partners, a management and security consulting firm, around August 2018. The New York Times reported


President Donald Trump’s personal attorney, Rudy Giuliani, was paid $500,000 for work he did for a company co-founded by the Ukrainian-American businessman arrested last week on campaign finance charges, Giuliani told Reuters on Monday. Giuliani said Parnas’ company, Boca Raton, Florida-based Fraud Guarantee, whose website says it aims to help clients “reduce and mitigate fraud,” engaged Giuliani Partners, a management and security consulting firm, around August 2018. The New York Times reported
Trump lawyer Giuliani was paid $500,000 to consult on indicted associate’s firm Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, parnas, giuliani, money, consult, paid, lawyer, trump, fruman, associates, told, guarantee, indicted, work, 500000, fraud, source, week, firm


Trump lawyer Giuliani was paid $500,000 to consult on indicted associate's firm

President Donald Trump’s personal attorney, Rudy Giuliani, was paid $500,000 for work he did for a company co-founded by the Ukrainian-American businessman arrested last week on campaign finance charges, Giuliani told Reuters on Monday.

The businessman, Lev Parnas, is a close associate of Giuliani and was involved in his effort to investigate Trump’s political rival, former Vice President Joe Biden, who is a leading contender for the 2020 Democratic Party nomination.

Giuliani said Parnas’ company, Boca Raton, Florida-based Fraud Guarantee, whose website says it aims to help clients “reduce and mitigate fraud,” engaged Giuliani Partners, a management and security consulting firm, around August 2018. Giuliani said he was hired to consult on Fraud Guarantee’s technologies and provide legal advice on regulatory issues.

Federal prosecutors are “examining Giuliani’s interactions” with Parnas and another Giuliani associate, Igor Fruman, who was also indicted on campaign finance charges, a law enforcement source told Reuters on Sunday.

The New York Times reported last week that Parnas had told associates he paid Giuliani hundreds of thousands of dollars for what Giuliani said was business and legal advice. Giuliani said for the first time on Monday that the total amount was $500,000.

Giuliani told Reuters the money came in two payments made within weeks of each other. He said he could not recall the dates of the payments. He said most of the work he did for Fraud Guarantee was completed in 2018 but that he had been doing follow-up for over a year.

Parnas and Fruman were arrested at Dulles Airport outside Washington last week on charges they funneled foreign money to unnamed U.S. politicians in a bid to influence U.S.-Ukraine relations in violation of U.S. campaign finance laws. The men were preparing to board a plane to Europe.

According to an indictment unsealed by U.S. prosecutors, an unidentified Russian businessman arranged for two $500,000 wires to be sent from foreign bank accounts to a U.S. account controlled by Fruman in September and October 2018. The money was used, in part, by Fruman, Parnas and two other men charged in the indictment to gain influence with U.S. politicians and candidates, the indictment said.

Foreign nationals are prohibited from making contributions and other expenditures in connection with U.S. elections, and from making contributions in someone else’s name.

Giuliani said he was confident that the money he received was from “a domestic source,” but he would not say where it came from.

“I know beyond any doubt the source of the money is not any questionable source,” he told Reuters in an interview. “The money did not come from foreigners. I can rule that out 100%,” he said.

He declined to say whether the money had been paid directly to him by Fraud Guarantee or from another source.

John Dowd, a lawyer for Parnas and Fruman, also would not discuss the source of the funding that Giuliani said he received for his work for Fraud Guarantee. “What I know is privileged,” Dowd said.


Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, parnas, giuliani, money, consult, paid, lawyer, trump, fruman, associates, told, guarantee, indicted, work, 500000, fraud, source, week, firm


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As Facebook’s libra faces headwinds, China is racing to launch its own global cryptocurrency

The People’s Bank of China “has expedited its development of a Central Bank Digital Currency” after Libra’s announcement in June, the analysts said. China’s proposed digital currency would bear some similarities to Facebook’s libra, a senior central bank officer said this summer, according to a transcript of a speech that was published online. The People’s Bank of China announced earlier this year that it was working on a digital currency backed by the yuan, reportedly inspired by Facebook’s ann


The People’s Bank of China “has expedited its development of a Central Bank Digital Currency” after Libra’s announcement in June, the analysts said. China’s proposed digital currency would bear some similarities to Facebook’s libra, a senior central bank officer said this summer, according to a transcript of a speech that was published online. The People’s Bank of China announced earlier this year that it was working on a digital currency backed by the yuan, reportedly inspired by Facebook’s ann
As Facebook’s libra faces headwinds, China is racing to launch its own global cryptocurrency Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: kate rooney
Keywords: news, cnbc, companies, racing, regulators, bank, digital, faces, cryptocurrency, libra, headwinds, week, launch, currency, china, global, facebooks


As Facebook's libra faces headwinds, China is racing to launch its own global cryptocurrency

A visual representation of a cryptocurrency coin on display in front of the logos for Facebook and Libra.

Fed chairman Jerome Powell said earlier this year that the U.S. is keeping an eye on sovereign-issued digital currencies but that it wasn’t something he was “actively considering.” In the meantime, other digital currencies could “dampen the domineering influence of the U.S. dollar on global trade,” Bank of England governor Mark Carney said during a speech in Jackson Hole, Wyoming, earlier this year.

Cryptocurrency would add to a long list of existing tensions between the global superpowers. The U.S. and China are locked in a stalemate on trade, and a battle for dominance in 5G, the mobile network promising faster data speeds. The U.S. Treasury Department has also labeled China as a currency manipulator — a complaint that could be exacerbated if a yuan-backed cryptocurrency takes off.

“If U.S. regulators ultimately dismiss Libra and decide not to draft regulation to encourage Crypto innovation in the U.S., China’s [Central Bank Digital Currency] may be strategically positioned to become the de facto global digital currency in emerging economies, largely through Alipay, WeChat, UnionPay and other messaging & payment apps,” RBC analysts Mark Mahaney and Zachary Schwartzman said in a research note Tuesday.

RBC Capital Markets analysts told clients this week that based on recent conversations and meetings in Beijing, China’s plans are moving quickly. The People’s Bank of China “has expedited its development of a Central Bank Digital Currency” after Libra’s announcement in June, the analysts said.

China’s proposed digital currency would bear some similarities to Facebook’s libra, a senior central bank officer said this summer, according to a transcript of a speech that was published online. He also said the digital coin could be used across major payment platforms, including China’s ubiquitous WeChat and Alipay.

“China has been incredibly strategic about how they think about cryptocurrency,” Brad Garlinghouse, CEO of Ripple, told CNBC in a phone interview. “They have been dependent on the U.S. dollar as the global reserve currency — to the extent that other currencies emerge, and they can help propagate those, they’re intrigued by that.”

The People’s Bank of China announced earlier this year that it was working on a digital currency backed by the yuan, reportedly inspired by Facebook’s announcement. Analysts and crypto industry leaders are highlighting geopolitical implications of China launching a digital currency first — especially if libra hits a brick wall with U.S. regulators.

Facebook’s cryptocurrency plans looked shaky this week after a handful of high-profile members bowed out of the project. But while libra slowly gets off the ground, China is looking to launch an alternative.

In June, Facebook announced that it would spearhead the launch of a cryptocurrency run by the nonprofit Switzerland-based Libra Association in 2020. Libra is a so-called “stable coin,” meaning its value is tied to that of an underlying fiat currency such as the dollar. For now, the Libra Association has said its cryptocurrency would be pegged to the yen, U.S. dollar and euro. It has not said whether the yuan would be included.

It started with roughly two dozen members. But last week Visa, PayPal, MasterCard and Stripe all dropped out, fueling concerns that the project may never see the light of day. The association met this week in Geneva, Switzerland, and the remaining group signed the association’s charter on Monday.

Katie Haun, general partner at Andreessen Horowitz and co-head of its $350 million cryptocurrency fund, was elected to the board of directors for the project. Despite the exodus of high-profile names this week, Haun said she and the firm “remain committed to Libra’s mission.”

The project received pushback this summer from senior congressional finance committee members, global regulators, former lawmakers and industry insiders who flagged risks and questioned Facebook’s ambitions.

Lisa Ellis, senior equity analyst at MoffettNathanson, said regulators may be sidetracked by Facebook’s involvement in libra and need to “keep their eye on the fact that we do need to innovate to create digital forms of currency.”

“If governments and regulators are concerned about their control over monetary systems and money flows, the best defense would be a good offense,” Ellis said. “It would behoove regulators in the U.S. and Europe over the long term to maintain their leadership given that the dollar, the euro and the yen are used as proxies for global reserve currencies.”

Ripple’s Garlinghouse, who has been critical of libra, pointed to U.S. dominance in the rise of the internet, too. That was in part because of a “constructive regulatory policy.” If cryptocurrency projects aren’t grown in the U.S., he said, there are potential “geopolitical implications.”

Garlinghouse is hardly alone in calls for clearer regulation. In a roundtable hosted on Capitol Hill last year, more than 50 cryptocurrency industry participants from Fidelity, Nasdaq, State Street and Andreessen Horowitz voiced concerns about lack of clear laws and potential for innovation to flee overseas as a result.

“While bashing Facebook is good politics, neglecting the traditional role of the United States in welcoming the growth of innovative technology is not,” the Blockchain Association, a Washington, D.C., lobbying group for cryptocurrency and blockchain, said in a blog post last month. “Congress should focus on nurturing open blockchain networks before the United States loses out in this global technology race.”

Andreessen’s Haun told CNBC recently that it would be a “dangerous thing, and frankly a dangerous precedent to start shutting down technology before it’s built.” Haun also said there are “national security implications” if the United States falls behind in this area, and pointed to China’s cryptocurrency as an example.

Others are more worried about the national security implications if libra does get off the ground. Treasury Secretary Steven Mnuchin said in July that Facebook’s planned digital currency “could be misused by money launderers and terrorist financiers” and that it was a “national security issue.”

He told CNBC’s “Squawk Box” in an interview Monday that he met with libra representatives on multiple occasions and has been “very clear” that if they don’t meet anti-money-laundering standards “that we would take enforcement actions against them.”

“I think they realized that they’re not ready, they’re not up to par,” Mnuchin said. “I assume some of the partners got concerned and dropped out until they meet those standards.”


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: kate rooney
Keywords: news, cnbc, companies, racing, regulators, bank, digital, faces, cryptocurrency, libra, headwinds, week, launch, currency, china, global, facebooks


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Sterling jumps after EU negotiator Barnier says Brexit deal is still possible this week

Sterling rose sharply against the dollar Tuesday after optimistic comments on Brexit from EU negotiator Michel Barnier. He added that “any agreement must work for everyone,” saying it is “high time to turn good intentions into a legal text.” Traders have been on edge as the Brexit deadline of Oct. 31 approaches and there’s still no clear agreement for how the U.K. will leave the European Union. Last week, the U.K. and the EU seemingly drew closer when it came to their long-standing differences o


Sterling rose sharply against the dollar Tuesday after optimistic comments on Brexit from EU negotiator Michel Barnier. He added that “any agreement must work for everyone,” saying it is “high time to turn good intentions into a legal text.” Traders have been on edge as the Brexit deadline of Oct. 31 approaches and there’s still no clear agreement for how the U.K. will leave the European Union. Last week, the U.K. and the EU seemingly drew closer when it came to their long-standing differences o
Sterling jumps after EU negotiator Barnier says Brexit deal is still possible this week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: silvia amaro
Keywords: news, cnbc, companies, sterling, negotiator, week, johnson, barnier, agreement, work, difficult, deal, possible, hard, brexit, luxembourg, jumps, minister


Sterling jumps after EU negotiator Barnier says Brexit deal is still possible this week

Sterling rose sharply against the dollar Tuesday after optimistic comments on Brexit from EU negotiator Michel Barnier.

“Our team(s) are working hard, and work has just started now today, this work has been intense over the weekend and yesterday, because even if the agreement will be difficult, more and more difficult, to be frank, it is still possible this week,” Barnier told reporters in Luxembourg on Tuesday morning.

He added that “any agreement must work for everyone,” saying it is “high time to turn good intentions into a legal text.”

Traders have been on edge as the Brexit deadline of Oct. 31 approaches and there’s still no clear agreement for how the U.K. will leave the European Union.

U.K. Prime Minister Boris Johnson made fresh proposals earlier this month to overcome differences over the controversial Irish backstop — an insurance policy that is meant to protect the EU’s single market (an economic area with the same rules and standards) without imposing a hard border between the Republic of Ireland and Northern Ireland.

Last week, the U.K. and the EU seemingly drew closer when it came to their long-standing differences over the issue when Johnson agreed that there could not be a customs border on the island of Ireland.

Stef Block, the Dutch foreign affairs minister, said at his arrival in Luxembourg Tuesday that the U.K. has taken some steps, “but not enough to guarantee the integrity of the (EU) common market.”

“We still have time to avoid a no deal and we should use this time,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: silvia amaro
Keywords: news, cnbc, companies, sterling, negotiator, week, johnson, barnier, agreement, work, difficult, deal, possible, hard, brexit, luxembourg, jumps, minister


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The moment of truth for banks approaching

The moment of truth for banks approaching10 Hours AgoBanks set to report earnings later this week. How will financials fare? With CNBC’s Melissa Lee and the Fast Money traders, Tim Seymour, Carter Worth, Steve Grasso and Guy Adami.


The moment of truth for banks approaching10 Hours AgoBanks set to report earnings later this week. How will financials fare? With CNBC’s Melissa Lee and the Fast Money traders, Tim Seymour, Carter Worth, Steve Grasso and Guy Adami.
The moment of truth for banks approaching Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14
Keywords: news, cnbc, companies, moment, traders, set, week, truth, report, approaching, money, tim, seymour, worth, banks, steve


The moment of truth for banks approaching

The moment of truth for banks approaching

10 Hours Ago

Banks set to report earnings later this week. How will financials fare? With CNBC’s Melissa Lee and the Fast Money traders, Tim Seymour, Carter Worth, Steve Grasso and Guy Adami.


Company: cnbc, Activity: cnbc, Date: 2019-10-14
Keywords: news, cnbc, companies, moment, traders, set, week, truth, report, approaching, money, tim, seymour, worth, banks, steve


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Brexit deal still out of reach as UK and EU enter last days of talks

Boris Johnson, U.K. prime minister, center, and Jean-Claude Juncker, president of the European Commission, right, depart following Brexit talks at a restaurant in Luxembourg, on Monday, Sept. 16, 2019. The U.K. and EU are gearing up for what could be the busiest week in British politics since the referendum in June 2016, as both sides try to thrash out a last-minute deal. This week is seen as the last in which a deal can be struck ahead of a two-day EU summit starting on Thursday October 17. Tal


Boris Johnson, U.K. prime minister, center, and Jean-Claude Juncker, president of the European Commission, right, depart following Brexit talks at a restaurant in Luxembourg, on Monday, Sept. 16, 2019. The U.K. and EU are gearing up for what could be the busiest week in British politics since the referendum in June 2016, as both sides try to thrash out a last-minute deal. This week is seen as the last in which a deal can be struck ahead of a two-day EU summit starting on Thursday October 17. Tal
Brexit deal still out of reach as UK and EU enter last days of talks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: holly ellyatt
Keywords: news, cnbc, companies, reach, prime, brexit, talks, summit, agreement, enter, week, struck, days, deal


Brexit deal still out of reach as UK and EU enter last days of talks

Boris Johnson, U.K. prime minister, center, and Jean-Claude Juncker, president of the European Commission, right, depart following Brexit talks at a restaurant in Luxembourg, on Monday, Sept. 16, 2019.

The U.K. and EU are gearing up for what could be the busiest week in British politics since the referendum in June 2016, as both sides try to thrash out a last-minute deal.

It’s been over three years since a majority of the U.K. voted to leave the EU but a withdrawal agreement has proved elusive with various competing interests, logistics and visions of a potential post-Brexit relationship between the U.K. and EU.

This week is seen as the last in which a deal can be struck ahead of a two-day EU summit starting on Thursday October 17.

If no deal is agreed by October 19, the U.K. Prime Minister Boris Johnson is legally bound to ask the EU for a delay to the departure date (October 31) although he is very reluctant to do so.

Talks last week were meant to be the last chance for an agreement to be struck but EU negotiators are reportedly willing to keep talking until Wednesday, the eve of the EU summit, the BBC reported.

The U.K. Parliament is ready to meet on Saturday and vote on a Brexit deal if an agreement can be reached at the summit. It will be the first time Parliament has convened on a Saturday since 1982, amid the Falklands War.

Nonetheless, that all depends on the last-ditch talks to get over the largest stumbling block to a Brexit deal — namely the Irish “backstop” issue — an insurance policy to ensure there is no hard border on the island of Ireland in the event of no post-Brexit trade deal.


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: holly ellyatt
Keywords: news, cnbc, companies, reach, prime, brexit, talks, summit, agreement, enter, week, struck, days, deal


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