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  • Microsoft earnings hit by personal computing slowdown | CNN Business

    Microsoft earnings hit by personal computing slowdown | CNN Business

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    CNN Business
     — 

    Microsoft posted a double-digit profit decline in the three-month period ending in September as the company confronted a slowdown in the personal computing industry and a broader economic downturn.

    The tech giant on Tuesday reported net income of $17.6 billion for the quarter, a decrease of 14% from the year prior. Microsoft

    (MSFT)
    ’s revenue, meanwhile, grew a modest 11% to $50.1 billion. Both results were better than analysts had expected.

    Microsoft’s Azure cloud services unit saw revenue increase by 35% from the prior year, but the growth was slower than some analysts had hoped for a division that has been one of the company’s biggest bright spots in recent years.

    Other parts of Microsoft’s business declined. Microsoft said revenue from its Windows OEM operations fell 15% from the year prior, which comes as demand for personal computers has fallen sharply on the heels of a pandemic-fueled boom. Consulting firm Gartner reported earlier this month that worldwide PC shipments declined 19.5% in the third quarter of 2022, compared to the same period last year. This marks the steepest market decline since Gartner began tracking the PC market in the mid-1990s.

    Microsoft also said revenue from Xbox content and services declined by 3%. The company reportedly recently laid off employees in its Xbox division, among other parts of the company, as it — like many other tech companies right now — looks to cut costs.

    Shares of Microsoft fell 2% in after-hours trading Tuesday following the earnings report.

    Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a broader market downturn as rising inflation, geopolitical uncertainty from the war in Ukraine and more macroeconomic headwinds continue to wreak havoc on the tech industry.

    “In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way,” Satya Nadella, CEO of Microsoft, said in a statement Tuesday announcing the quarterly earnings.

    Haris Anwar, senior analyst at Investing.com, called Microsoft’s earnings report a “mixed bag” in a commentary after the results were released on Tuesday.

    “It shows that Microsoft is weathering the economic storm better than other technology players and its diversified business model is playing a big role in doing so,” Anwar said. But he added that the slowing cloud computing growth was cause for concern.

    “If this growth deceleration continues, it could harm an investment case in the company’s stock which is considered a safe-haven amid the market turmoil, with these concerns reflected in the company’s shares being down in extended trading,” Anwar said.

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  • Where Are Markets Headed? Six Pros Take Their Best Guess

    Where Are Markets Headed? Six Pros Take Their Best Guess

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    A massive selloff in bonds. A plunge in tech stocks. The implosion of cryptocurrencies. The highest inflation in four decades.

    Amid a brutal and uncertain climate, we asked six heavyweights in the world of finance to share their thoughts on the state of the markets, how they have handled this year’s carnage and what they anticipate in the future.

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  • Meta’s stock falls 17% as its quarterly profit is cut in half | CNN Business

    Meta’s stock falls 17% as its quarterly profit is cut in half | CNN Business

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    New York
    CNN Business
     — 

    Meta on Wednesday posted the second quarterly revenue decline in its history since going public and warned that it is making “significant changes” aimed at cutting costs ahead of 2023, as it confronts an economic downturn that is hitting its core online advertising business.

    For the three months ended in September, Meta

    (FB)
    posted revenue of $27.7 billion, down 4% year-over-year and slightly above Wall Street analysts’ expectations. The Facebook parent company posted its first-ever quarterly revenue decline during the June quarter.

    The company reported net income of nearly $4.4 billion — less than half the amount it made during the same period in the prior year and below analysts’ projections.

    “We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company,” Mark Zuckerberg, Meta’s founder and CEO, said in a statement.

    Meta’s stock fell almost 17% in after-hours trading Wednesday following the results.

    Demand for online advertising has declined in recent months amid rising inflation and fears of a looming recession. Tech companies like Google and Snap have also seen hits to their ad revenues. Meta CFO David Wehner said on a call with analysts following the report that the average price per ad across Meta’s platforms fell 18% during the quarter.

    At the same time, Meta’s user growth is slowing amid heightened competition from rivals like TikTok. Meta reported having 2.96 billion monthly active users on its core Facebook app at the end of the quarter, up 2% year-over-year. That’s down from the 6% growth rate it posted in the year-ago quarter. Daily active users on Meta’s family of apps grew 4% to 2.93 billion, down from the 11% increase it posted the year prior.

    Zuckerberg noted on the call that Instagram now has more than 2 billion monthly active users and WhatsApp has more than 2 billion daily active users.

    These challenges to its core business come as Meta is funneling billions of dollars into an ambitious new bet to build a future version of the internet called the metaverse that likely remains years away.

    Wehner said operating losses from the company’s metaverse ambitions, which are categorized under its Reality Labs unit, are expected to “grow significantly year-over-year” in 2023. Reality Labs lost nearly $3.7 billion in the September quarter, and has cost the company a total of $9.4 billion so far this year. Revenue from the Reality Labs unit also fell by nearly 50% year-over-year in the September quarter.

    Altimeter Capital, a Meta sharehoder, last week wrote an open letter calling on the company to reduce its headcount expenses by at least 20% and its annual capital expenditure by at least $5 billion, and to limit its investment in the metaverse to no more than $5 billion per year.

    In Wednesday’s report, Wehner said the company is “making significant changes across the board to operate more efficiently.” Executives said the company expects headcount at the end of 2023 will be roughly in line with or slightly smaller than the 87,314 it reported as of the end of September (an increase of 28% from the year prior).

    “We are holding some teams at in terms of headcount, shrinking others and investing headcount growth only in our highest priorities,” Wehner said. He also hinted that the company could shrink its physical office footprint.

    Zuckerberg said on the call that the three key areas of investment for the company in the coming year are its AI discovery engine that’s powering Reels and other recommendations, ads and business messaging, and its future vision for the metaverse. Meta earlier this month unveiled its newest virtual-reality headset, the Meta Quest Pro, and touted its potential for business customers.

    In the final three months of the year, Meta expects quarterly revenue between $30 billion and $32.5 billion. On the high end, the projection would mark a 3.5% year-over-year decline from the same period in the prior year.

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  • ‘He’s not willing to live in my house because it has fewer amenities’: My boyfriend wants me to move in and pay half his monthly costs. Is that fair?

    ‘He’s not willing to live in my house because it has fewer amenities’: My boyfriend wants me to move in and pay half his monthly costs. Is that fair?

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    Dear Quentin,

    My boyfriend owns a house with a 30-year mortgage balance of $150,000 on a 4% interest rate. He has $275,000 in cash and retirement accounts. He is retired.

    My house is paid off. I have $50,000 in cash and retirement accounts. I would like to retire within one to two years.

    We wish to cohabitate but have not been able to agree on a fair “rent” to pay. He is not willing to live in my house because it has fewer amenities. 

    ‘He believes I should pay half of his monthly cost at his nicer, more expensive house. He could pay off his mortgage and save $600 a month, but he likes to have cash. ‘

    He believes I should pay half of his monthly cost at his nicer, more expensive house. He could pay off his mortgage and save $600 a month, but he likes to have cash. 

    I have forgone that luxury and paid off my mortgage. I am now working on building my savings. I don’t feel it is fair for me to pay half of the mortgage interest expense. 

    I don’t know what repair and maintenance costs should be expected from me, if I have no equity in his house. There are many points of view, none of which feels fair.

    These are the options he set forth:

    · I live in his house and thus get to rent mine out. Pay him half of what I net from that rental.

    · Pay half of the actual costs of living expenses and upkeep on his house while I live there.

    · Pay him what I pay to live in my current home for taxes, insurance, and utilities: $800/month.

    What say you, Moneyist?

    House Owner & Girlfriend 

    Dear House Owner,

    I’m sure your house is just as nice. And just because he believes you should pay half his costs, does not make it so. If you are paying no mortgage on your own home, I don’t believe you should pay one red cent more to live in his home. 

    That is to say, you should not come out of this arrangement paying more, just because (a) he would like you to live in his home and (b) he would like you to help him pay off his mortgage, or his tax and maintenance.

    You both made different choices: Yours was to have a home that’s free-and-clear of a mortgage, so you can spend this time building up your savings for retirement and/or a rainy day. 

    You have worked hard to pay off your mortgage, and you have $50,000 in savings, less than 20% of your boyfriend’s savings. He has $150,000 left on his mortgage, and that’s his choice.

    If his aim is to find help to pay off half of his mortgage, he can find a tenant to do that for him. 

    You are not the answer to his long-term financial plans, you are his partner in life. If his aim is to find help to pay off half of his mortgage, he can find a tenant to do that for him. What do you expect of you? Forget what he expects.

    By the way he is approaching this arrangement, it seems like he wants the equivalent of a detergent and a fabric softener — a girlfriend and a tenant in one handy bottle to keep his financial plans smooth and clean.

    Bottom line: You should not compromise any plans to build your nest egg. The lady’s not for turning. Only acquiesce to his plan if — with the help of an actual tenant in your home — it helps you too. 

    In other words, the desired outcome for you is more important than the suggestions he has put forward. He could save $600 a month! That’s his business. Not yours. What do you want to have in your pocket every month?

    Figure out what you want, and then work your way backwards based on that goal. For instance, if you can pay him $800 a month, charge $1,600 rent for your home, and put $800 towards your savings, do that.

    You’ve come a long way. Don’t let these negotiations scupper that.

    Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

    The Moneyist regrets he cannot reply to questions individually.

    By emailing your questions, you agree to having them published anonymously on MarketWatch. By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

    Also read:

    I built a property portfolio with 23 units while we were dating. How much should I give to my fiancé in our prenup?

    ‘We will not outlive our money’: How can we give $10,000 to our nieces and nephews without offending the rest of the family?

    ‘S‘I hate to be cheap’: Is it still acceptable to arrive at a friend’s house for dinner with just one bottle of wine?

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  • Stock picking isn’t dead. But for most investors it might as well be | CNN Business

    Stock picking isn’t dead. But for most investors it might as well be | CNN Business

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    New York
    CNN Business
     — 

    What’s the best way to invest? Plenty of active traders are out there trying to make a quick buck on meme stocks like AMC and GameStop, fads like Snap and Peloton or bitcoin and other cryptocurrencies. Professional money managers try to identify stocks that can beat the broader market over the long haul.

    But for most individual investors, a strategy of buying and holding so-called passive funds that track top indexes like the S&P 500 and Nasdaq 100 makes the most sense if you want to accumulate wealth for retirement. It’s like that popular old rotisserie chicken infomercial slogan: Set it and forget it.

    Index funds tend to be cheaper. New data from S&P Dow Jones Indices showed that investors saved more than $400 billion in fees with index funds over the past quarter of a century.

    Obviously, index provider S&P Global

    (SPGI)
    has a vested interest in promoting passive funds backed to various benchmark indexes.

    The company, along with competitors like iShares owner BlackRock

    (BLK)
    and index provider MSCI

    (MSCI)
    , offers many options for investors looking to get exposure to the broader market without trying to pick individual winners and losers.

    Even legendary investing guru Warren Buffett of Berkshire Hathaway

    (BRKB)
    has extolled the virtues of index funds for average investors. That’s because Buffett, despite being one of the most successful stock pickers ever, doesn’t believe most active investment managers can beat the broader market.

    The 92-year-old Oracle of Omaha famously wrote in Berkshire’s 2014 annual shareholder letter that his advice for the trustee of his estate is to “put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund” for his wife. (Buffett suggested one from Vanguard.)

    “I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers,” he wrote.

    And given how some high-profile active investors have lagged the market lately, there is something to be said for conservative investors with a long-term horizon betting on the S&P 500 over a handful of stocks.

    Just look at Cathie Wood at Ark, who has made big, high profile bets on companies like Tesla

    (TSLA)
    , Zoom

    (ZM)
    , Roku

    (ROKU)
    and Teladoc

    (TDOC)
    . Ark’s flagship Innovation ETF has plunged 60% this year, compared to “just” a 20% drop for the S&P 500.

    “Actively managed funds have failed to survive and beat their benchmarks, especially over longer time horizons,” said Bryan Armour, director of passive strategies research for North America at Morningstar, in a report last month. He noted that just one of every four active funds beat their passive benchmarks over the ten years ending in June.

    Of course, buying index funds is no guarantee of investing success either…especially not in the short-term. After all, the S&P 500 has plunged this year, too.

    “Diversified portfolios do okay usually, but they’ve been hit hard lately by the rise in rates,” said Shamik Dhar, chief economist at BNY Mellon Investment Management, in an interview with CNN Business.

    Even the vaunted 60/40 asset allocation recommendation for investors, i.e. owning 60% stocks and 40% bonds, has so far failed to beat the market in 2022.

    “This year, it seems like there has been a broad-based source of fear. It’s shock therapy. There is slowing growth and inflation. That is disorienting investors,” said Adam Hetts, global head of portfolio construction and strategy at Janus Henderson Investors, in an interview with CNN Business.

    Along those lines, any investor with decent exposure to bonds, hoping that they’d hold up better as stocks tanked, has gotten a rude awakening. The iShares 20+ Year Treasury Bond ETF

    (TLT)
    , a top proxy for long-term bonds, has done even worse than the stock market, plunging more than 35% this year.

    That’s why some investors aren’t singing a funeral dirge for active stock picking – just yet.

    “A 10-year ‘secular bear market’ is underway,” said Stifel chief equity strategist Barry Bannister in a recent report, who predicts that the market may be stuck in a narrow range throughout the rest of the decade.

    “We believe this environment favors the following approach: active (not broad passive) management,” he said.

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  • China’s yuan tumbles to all-time low amid fears about Xi’s third term | CNN Business

    China’s yuan tumbles to all-time low amid fears about Xi’s third term | CNN Business

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    Hong Kong
    CNN Business
     — 

    China’s yuan tumbled to an all-time low on international markets on Tuesday, as investors fled Chinese assets amid fears about Xi Jinping’s shocking move to tighten his grip on power at a major leadership reshuffle.

    In trading outside of mainland China, the yuan briefly plunged to around 7.36 per dollar early Tuesday, the lowest level on record, according Refinitiv, which has data going back to 2010. It then pared losses, trading at 7.33 by 1 pm Hong Kong time.

    On the tightly managed domestic market, the yuan also dropped sharply on Tuesday, hitting the weakest level in nearly 15 years.

    The declines came alongside a historic market rout for Chinese assets worldwide. On Monday, Chinese stocks plummeted in Hong Kong and New York, wiping out billions of dollars in their market value. Hong Kong’s benchmark Hang Seng

    (HSI)
    Index closed down 6.4%. The Nasdaq Golden Dragon China Index also dived more than 14%. On Tuesday, the Hang Seng

    (HSI)
    rebounded slightly, up 0.8% by noon.

    The huge sell-offs came just days after the ruling Communist Party unveiled its new leadership for the next five years. In addition to securing an unprecedented third term as party chief, Xi packed his new leadership team with staunch loyalists.

    A number of senior officials who have backed market reforms and opening up the economy were missing from the new top team, stirring concerns about the future direction of the country and its relations with the United States.

    International investors spooked by the outcome of the Communist Party’s leadership reshuffle dumped Chinese assets despite the release of stronger-than-expected GDP data. They’re worried that Xi’s tightening grip on power will lead to the continuation of Beijing’s existing policies and further dent the economy.

    China’s leadership reshuffle “sparked worries about the continuation of market-unfavourable policies and increasing risk of policy mistakes under President Xi’s power domination in coming years,” said Ken Cheung, chief Asian forex strategist at Mizuho Bank.

    “Foreign investors took action to cut their exposure on Chinese assets,” he said, adding that the Chinese currency was faced with mounting capital outflow pressure.

    The Chinese yuan, together with other major global currencies, has weakened rapidly against the dollar in recent months. The greenback has surged to the highest level in two decades against a basket of major counterparts, boosted by a hawkish Fed that attempts to contain runaway inflation.

    So far this year, the yuan has slumped more than 15% against the dollar, on track to log its worst year since 1994 — when China devalued its currency by 33% overnight as part of market reforms.

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  • Hong Kong stocks plunge 6% as fears about Xi’s third term trump China GDP data | CNN Business

    Hong Kong stocks plunge 6% as fears about Xi’s third term trump China GDP data | CNN Business

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    Hong Kong
    CNN Business
     — 

    Hong Kong stocks had their worst day since the 2008 global financial crisis, just a day after Chinese leader Xi Jinping secured his iron grip on power at a major political gathering.

    Foreign investors spooked by the outcome of the Communist Party’s leadership reshuffle dumped Chinese equities and the yuan despite the release of stronger-than-expected GDP data. They’re worried that Xi’s tightening grip on power will lead to the continuation of Beijing’s existing policies and further dent the economy.

    Hong Kong’s benchmark Hang Seng

    (HSI)
    Index plunged 6.4% on Monday, marking its biggest daily drop since November 2008. The index closed at its lowest level since April 2009.

    The Chinese yuan weakened sharply, hitting a fresh 14-year low against the US dollar on the onshore market. On the offshore market, where it can trade more freely, the currency tumbled 0.8%, hovering near its weakest level on record, even as the Chinese economy grew 3.9% in the third quarter from a year ago, according to the National Bureau of Statistics. Economists polled by Reuters had expected growth of 3.4%.

    The sharp sell-off came one day after the ruling Communist Party unveiled its new leadership for the next five years. In addition to securing an unprecedented third term as party chief, Xi packed his new leadership team with staunch loyalists.

    A number of senior officials who have backed market reforms and opening up the economy were missing from the new top team, stirring concerns about the future direction of the country and its relations with the United States. Those pushed aside included Premier Li Keqiang, Vice Premier Liu He, and central bank governor Yi Gang.

    “It appears that the leadership reshuffle spooked foreign investors to offload their Chinese investment, sparking heavy sell-offs in Hong Kong-listed Chinese equities,” said Ken Cheung, chief Asian forex strategist at Mizuho bank.

    The GDP data marked a pick-up from the 0.4% increase in the second quarter, when China’s economy was battered by widespread Covid lockdowns. Shanghai, the nation’s financial center and a key global trade hub, was shut down for two months in April and May. But the growth rate was still below the annual official target that the government set earlier this year.

    “The outlook remains gloomy,” said Julian Evans-Pritchard, senior China economist for Capital Economics, in a research report on Monday.

    “There is no prospect of China lifting its zero-Covid policy in the near future, and we don’t expect any meaningful relaxation before 2024,” he added.

    Coupled with a further weakening in the global economy and a persistent slump in China’s real estate, all the headwinds will continue to pressure the Chinese economy, he said.

    Evans-Pritchard expected China’s official GDP to grow by only 2.5% this year and by 3.5% in 2023.

    Monday’s GDP data were initially scheduled for release on October 18 during the Chinese Communist Party’s congress, but were postponed without explanation.

    The possibility that policies such as zero-Covid, which has resulted in sweeping lockdowns to contain the virus, and “Common Prosperity” — Xi’s bid to redistribute wealth — could be escalated was causing concern, Cheung said.

    “With the Politburo Standing Committee composed of President Xi’s close allies, market participants read the implications as President Xi’s power consolidation and the policy continuation,” he added.

    Mitul Kotecha, head of emerging markets strategy at TD Securities, also pointed out that the disappearance of pro-reform officials from the new leadership bodes ill for the future of China’s private sector.

    “The departure of perceived pro-stimulus officials and reformers from the Politburo Standing Committee and replacement with allies of Xi, suggests that ‘Common Prosperity’ will be the overriding push of officials,” Kotecha said.

    Under the banner of the “Common Prosperity” campaign, Beijing launched a sweeping crackdown on the country’s private enterprise, which shook almost every industry to its core.

    “The [market] reaction in our view is consistent with the reduced prospects of significant stimulus or changes to zero-Covid policy. Overall, prospects of a re-acceleration of growth are limited,” Kotecha said.

    On the tightly controlled domestic market in China, the benchmark Shanghai Composite Index dropped 2%. The tech-heavy Shenzhen Component Index lost 2.1%.

    The Hang Seng Tech Index, which tracks the 30 largest technology firms listed in Hong Kong, plunged 9.7%.

    Shares of Alibaba

    (BABA)
    and Tencent

    (TCEHY)
    — the crown jewels of China’s technology sector — both plummeted more than 11%, wiping a combined $54 billion off their stock market value.

    The sell-off spilled over into the United States as well. Shares of Alibaba and several other leading Chinese stocks trading in New York, such as EV companies Nio

    (NIO)
    and Xpeng, Alibaba rivals JD.com

    (JD)
    and Pinduoduo

    (PDD)
    and search engine Baidu

    (BIDU)
    , were all down sharply Thursday afternoon.

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  • Flash PMI data show U.S. economic downturn ‘gathering significant momentum’ in October, says S&P Global

    Flash PMI data show U.S. economic downturn ‘gathering significant momentum’ in October, says S&P Global

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    The numbers: The S&P Global U.S. manufacturing sector rose slightly to 50.7 in October from 50.6 in the prior month, based on a “flash” survey.

    The flash U.S. services sector index, meanwhile, fell to 46.6 from 49.3.

    Readings above 50 signify expansion; below that, contraction.

    Economists polled by the Wall Street Journal had expected manufacturing to rise to 51.8 in October and for the service sector to rise to 49.7.

    Key details: In the service sector, the downturn was fueled by the rising cost of living and tightening financial conditions.

    New orders in the manufacturing sector fell back into contraction territory in October. Output remained resilient due to firms eating into backlogs of previously placed orders, S&P Global said.

    While price pressures picked up a bit in the service sector, the pace of the gain in inflation in the manufacturing sector was the slowest in almost two years.

    Big picture: Talk of a recession sometime in 2023 has picked up in the last week. Many economists are sounding more bearish on the outlook, especially since the Federal Reserve is now seen raising its benchmark rate to 5%. However, on Monday, economists at Goldman Sachs said that talk over a recession was overblown.

    What S&P Global said: “The US economic downturn gathered significant
    momentum in October, while confidence in the outlook also deteriorated sharply,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

    “Although price pressures picked up slightly in the service sector due to high food, energy and staff costs, as well as rising borrowing costs, increased competitive forces meant average prices charged for services grew at only a fractionally faster rate. Combined with the easing of price pressures in the goods-producing sector, this adds to evidence that consumer price inflation should cool in coming months,” he added.

    Market reaction: Stocks
    DJIA,
    +0.88%

    SPX,
    +0.58%

    were higher in early trading on Monday, while the yield on the 10-year Treasury note
    TMUBMUSD10Y,
    4.236%

    inched up to 4.24%.

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  • Jifiti Launches B2B BNPL Functionality, Augmenting Its Robust White-Labeled BNPL Platform

    Jifiti Launches B2B BNPL Functionality, Augmenting Its Robust White-Labeled BNPL Platform

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    Banks, lenders and merchants can now provide BNPL financing to business customers, in addition to consumers, through one platform.

    Press Release


    Oct 24, 2022

    Jifiti, a leading fintech company, announced today the launch of its business-to-business (B2B) BNPL solution. Any bank, lender and merchant that caters to business customers can now offer BNPL in their own brand, embedded directly into the user journey, without a middleman. 

    With the addition of B2B financing, Jifiti now facilitates every Buy Now Pay Later option for leading banks, lenders and merchants globally, online and in-store, through a single platform. Merchants that would like to offer B2B-embedded financing can connect to Jifiti’s platform via e-commerce plugins, a simple API integration or use Jifiti’s zero-integration virtual card technology. 

    Jifiti is rolling out its B2B solution to multiple partners across international markets, including top retail brands and financial institutions. Merchants can now support their business customers easily and seamlessly, offering them more payment options that were not previously available to them. Business buyers require specialized BNPL solutions as the purchasing amounts are higher, approvals are more complex and they require different loan terms than consumers. 

    Jifiti’s modular platform supports every BNPL option, including split payments, installment loans, lines of credit and now B2B loans. As the platform is white-labeled, the financial institution and merchant retain full customer and data ownership and are able to build brand loyalty. 

    “The B2B market was the next logical step in our journey at Jifiti. We aim to give every customer the financing that best suits their needs. Now, we can help our bank and merchant partners extend that same level of customization to their business customers through specialized B2B-embedded finance,” stated Yaacov Martin, CEO and Co-Founder of Jifiti.

    About Jifiti

    Jifiti is a leading fintech company that powers point-of-sale financing for banks, lenders and merchants. The company’s white-labeled Buy Now Pay Later (BNPL) platform provides banks and lenders with state-of-the-art technology to easily deploy and scale their competitive consumer loan programs at any merchant’s point of sale – online, in-store and via call center. 

    With its multinational presence, Jifiti provides end-to-end point-of-sale financing solutions to global brands in any international market. Jifiti works with leading financial institutions including Mastercard, Citizens Bank, CaixaBank, Credit Agricole, and retailers such as IKEA, Walmart and others worldwide. 

    Source: Jifiti

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  • Mortgage industry group predicts recession next year, expects mortgage rates to come back down from 7%

    Mortgage industry group predicts recession next year, expects mortgage rates to come back down from 7%

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    NASHVILLE, Tenn. — A mortgage industry group is expecting a recession to hit the U.S. economy.

    “We’re forecasting a recession for next year,” Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association, said Sunday during the industry group’s annual conference in Nashville, Tenn. 

    “The upside of that potentially for the industry is, that’s the thing that’s likely going to bring rates down a little bit,” he added.

    Also see: Mortgage bankers forecast rates to drop to 5.4% in 2023. Here’s what that means for home prices.

    In a statement, Fratantoni said the MBA’s forecast calls for a recession in the first half of 2023, and predicts the unemployment rate will rise from 3.5% to 5.5% by the end of next year.

    “We’re beginning to see some significant signs of softening in the labor market,” Frantantoni said. 

    He expects companies to no longer be scrambling to fill job openings, and that hiring will eventually cool off.

    On average in 2023, expect the economy to lose 25,000 jobs per month, he said, and end the year with employment at 5.5%. 

    That’s in stark contrast to the latest unemployment rate in September, which was 3.5%, according to the Bureau of Labor Statistics.

    “So a very, very different job market to today,” Frantantoni said. “I do expect the next couple of months are gonna be a pretty abrupt transition.”

    With a recession on the horizon, expect mortgage rates to come down to close to 5.4% at the end of next year, he said, versus the 7%-plus rates that the market is seeing today. 

    “We are holding to our view that this is a spike right now, driven by financial-market dislocation, heightened level of volatility in the market and this global slowdown we’re about to experience, the likelihood of recession in the U.S. will begin to pull this number,” Fratantoni said.

    Mike Fratantoni, senior vice president and chief economist for the MBA, speaks in Nashville on Sunday.


    AARTHI SWAMINATHAN

    Given the massive rise in rates this year, with the 30-year fixed rate averaging 6.94% last week as compared to 3.85% a year ago, many potential home buyers have decided to wait as their projected monthly mortgage payments have become unaffordable.

    Home sales have plunged, and are dragging down home prices. Sellers are also making more concessions in their attempts to woo buyers.

    As a result of the slowdown, the MBA is expecting total mortgage origination volume to fall to $2.05 trillion in 2023 from the $2.26 trillion expected in 2022. 

    They’re also expecting purchase originations to drop 3%, and refinances by 24%.

    Fratantoni also expects delinquencies to rise from 40-year lows.

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  • Twitter stock falls after report says Biden admin weighing security review of Musk ventures | CNN Business

    Twitter stock falls after report says Biden admin weighing security review of Musk ventures | CNN Business

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    New York
    CNN Business
     — 

    Shares of Twitter dropped as much as 8% in pre-market trading Friday as investors braced for some last-minute uncertainty around Elon Musk’s $44 billion deal to buy the company.

    The stock reaction, which rebounded somewhat later in the morning, followed a Bloomberg report that Biden administration officials are in early discussions about possibly subjecting some of Musk’s ventures to national security reviews, including the planned Twitter

    (TWTR)
    takeover. Asked by CNN, the administration pushed back on the report, which cited people familiar with the matter.

    “We do not know of any such conversations,” National Security Council Spokesperson Adrienne Watson said in a statement. A Treasury spokesperson said that the Committee on Foreign Investment in the United States “does not publicly comment on transactions that it may or may not be reviewing” by law and practice.

    Among the equity investors who committed to provide financing to help Musk fund the deal are several foreign entities, including the Qatar sovereign wealth fund and Saudi Arabian Prince Alwaleed bin Talal, who was already one of Twitter’s largest investors prior to Musk’s proposed takeover.

    In response to a tweet about the Bloomberg report, one user wrote: “It would be hysterical if the government stopped Elon from over paying for Twitter.” Musk responded to that tweet with a “100” emoji, which typically indicates emphatic agreement, and a crying laughing face emoji.

    It’s unclear what, if any, impact the reported security review could have on completing a deal that has already been subject to months of uncertainty. Musk has one week remaining to close the deal or face a rescheduled trial in the Delaware Court of Chancery that could result in him being forced to acquire the social media firm.

    Twitter declined to comment on the report about the possible review; representatives for Musk did not immediately respond to a request for comment.

    By other accounts, the deal appears to be moving toward completion. In a separate report Thursday evening, Bloomberg said that bankers and lawyers for both Twitter and Musk are preparing the paperwork needed to complete the deal. Bloomberg also last week reported that the company had frozen employees’ stock accounts in anticipation of the deal’s completion.

    On a conference call this week to discuss Tesla’s earnings results, Musk said he was “excited” about the Twitter deal, but also admitted that he is “obviously overpaying” for it. “The long-term potential for Twitter, in my view, is an order of magnitude greater than its current value,” he said.

    The Washington Post on Thursday reported that Musk told prospective investors in the deal that he planned to get rid of nearly 75% of the company’s staff, and that Twitter had already planned massive layoffs even if the deal did not go through, citing internal documents and interviews with people familiar with the matter. Neither Twitter nor representatives for Musk responded to requests for comment regarding layoff plans.

    Following the Washington Post report, Twitter General Counsel Sean Edgett sent a memo to staff saying the company does “not have any confirmation of the buyer’s plans following close and recommend not following rumors or leaked documents but rather wait for facts from us and the buyer directly,” according to a report from Bloomberg. A Twitter spokesperson confirmed to CNN the authenticity of the memo.

    Musk had previously discussed dramatically reducing Twitter’s workforce in personal text messages with friends about the deal, which were revealed in court filings, and didn’t dismiss the potential for layoffs in a call with Twitter employees in June.

    – CNN’s Matt Egan contributed to this report.

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  • IRS releases new federal tax brackets and standard deductions. Here’s how they affect your family’s tax bill.

    IRS releases new federal tax brackets and standard deductions. Here’s how they affect your family’s tax bill.

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    America’s high inflation rate will produce a 7% increase in the size of the standard deduction when workers file their taxes on their 2023 income, according to new inflation adjustments from the Internal Revenue Service.

    It’s also going to pump up tax brackets by 7% as well, according to the annual inflation adjustments the IRS announced this week.

    Many tax code provisions — but not all — are indexed for inflation, so the announcements are a recurring event. But when inflation is persistently clinging to four-decade highs, these annual adjustments carry extra significance.

    When inflation is persistently clinging to four-decade highs, these annual adjustments of approximately 7% for the standard deduction carry extra significance.

    Start with the standard deduction, which is what most people use instead of itemizing deductions.

    The standard deduction for individuals and married people filing separately will be $13,850 for the 2023 tax year. That’s a $900 increase from the $12,950 standard deduction for the upcoming tax season.

    For married couples filing jointly, the payout climbs to $27,700 for the 2023 tax year. That’s a $1,800 increase from the $25,900 standard deduction set for the upcoming tax year.

    The increases in the marginal tax rates reflect the same 7% rise. For example, the 22% tax bracket for this year is over $41,775 for single filers and over $83,550 for married couples filing jointly. Next year, the same 22% bracket applies to incomes over $44,725 and over $89,450 for married couples filing jointly.

    MarketWatch/IRS

    “The changes seem to be much larger than previous years because inflation is running much higher than it has in previous decades,” said Alex Durante, economist at the Tax Foundation, a right-leaning tax think tank.

    The IRS arrives at its inflation adjustments by averaging a slightly different inflation gauge, the so-called “chained Consumer Price Index” instead of the widely-watched Consumer Price Index, Durante noted. That’s an outcome of the Trump-era Tax Cuts and Jobs Act of 2017, he added.

    “The reason they do this is because the regular CPI is thought to overstate inflation because it doesn’t take into account the substitution that shoppers can make as cost rise,” Durante said. Shoppers substitute when they swap a more expensive item for cheaper one, and research shows many Americans are using the tactic.

    The IRS inflation adjustments come after September CPI data last week showed inflation of 8.2% year-over-year, slightly off from 8.3% in August. Also last week, the Social Security Administration said next year’s payments would include an 8.7% cost of living adjustment.

    The payout on the earned income tax credit — geared at low- and moderate-income working families who have been hit hard by red-hot inflation — is also increasing.

    The payout on the earned income tax credit is also increasing. The maximum payout for a qualifying taxpayer with at least three qualifying children climbs to $7,430, up from $6,935 for this tax year. The longstanding credit is geared at low- and moderate-income working families who have been hit hard by red-hot inflation.

    More than 60 provisions are slated for an increase inline with inflation, but many portions of the tax code are not indexed for inflation. Depending on the circumstances, the taxes or the tax breaks kick in sooner.

    Capital gains tax rules one example. The IRS lets a taxpayer use capital losses to offset capital gains taxes. If losses exceed gains, the IRS allows a taxpayer to deduct up to $3,000 in excess loses. They can then carry the remainder of the capital loses to future tax years. It’s been more than four decades since lawmakers last set the limit, according to Durante.

    While more than 60 provisions are slated for an increase inline with inflation, many portions of the tax code are not indexed for inflation. They include capital gains tax.

    Given the stock market’s rocky downward slide this year, many investors might welcome a fast-approaching tax break — even if it only enables a $3,000 deduction.

    At the same time, a married couple selling their home can exclude the first $500,000 of the sale from capital gains taxation, and it’s $250,000 for a single filer. It’s been that way since the exclusion’s 1997 establishment.

    The once white-hot housing market may be cooling, but many sellers may still be facing the point when taxes kick in. The median home listing was over $367,000 as of early October, according to Redfin
    RDFN,
    +2.29%
    .

    The child tax credit is another example. After the payout to parents last year jumped to $3,600 for children under age 6 and $3,000 per child age 6 to 17, it’s back to a maximum $2,000. The credit’s refundable portion climbs from $1,500 to $1,600 during tax year 2023, the IRS notes.

    Proponents of the boosted payouts and some Congressional Democrats want to revive the larger payments in negotiations tied to corporate taxes. The high costs of living are a strong reason to bring back the boosted credit, they say.

    Related:

    What smart strategies can lower your tax bill as year-end approaches? Read this before making any tax moves.

    Three things the best 401(k)s offer that can help you save a lot more

    Enhanced child tax credit helped reduce poverty for families before it ended last year. But there’s one way Republicans and Democrats could agree on reinstating it.

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  • 3 things that will help reduce the sting of high inflation | CNN Business

    3 things that will help reduce the sting of high inflation | CNN Business

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    There’s really nothing nice to say about inflation when it comes to your bottom line.

    It’s hard on your wallet. It’s hard on your savings because it reduces the buying power of the dollars you socked away. And it’s hard on your paycheck, because chances are your last raise did not keep pace with headline inflation, which the latest reading puts at 8.2%.

    But that same high inflation has led to a couple of changes that might offer you a little relief. And every little bit helps.

    Starting next year, your paycheck could be a little bigger thanks to inflation adjustments that the Internal Revenue Service will make to 2023 federal income tax brackets and other provisions.

    The net effect of those adjustments is this: More of your 2023 wages will be subject to lower tax rates than they were this year. And you may be able to deduct higher amounts of income.

    Here’s the skinny on that.

    When you save money in a tax-deferred workplace retirement plan like a 401(k) or 403(b), you can reduce your taxable income because you get a deduction for your contribution the year you make it. The more you save, the more you cut your tax bill.

    Starting next year, you will be allowed to contribute up to $22,500 into your 401(k), 403(b), most 457 plans or the Thrift Savings Plan for federal employees.

    That’s $2,000 – or roughly 9.8% – more than the current $20,500 federal contribution limit, a direct result of higher inflation. Those are the biggest adjustments made to the contribution limit in decades.

    More about those changes and changes to IRA contribution limits can be found here.

    Social Security recipients will receive an annual cost-of-living adjustment of 8.7% next year, the largest increase since 1981.

    The spike will boost retirees’ monthly payments by $146 to an estimated average of $1,827 for 2023.

    No one will be living large on that amount, but the extra cash will offset some of the higher prices for everyday expenses that seniors incur.

    Here’s more on the coming boost to Social Security checks, along with welcome news that there will be a drop in Medicare Part B premiums next year.

    CNN’s Tami Luhby contributed to this report

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  • IRS sets new 401(k) limits — investors can save a lot more money in 2023

    IRS sets new 401(k) limits — investors can save a lot more money in 2023

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    People can contribute up to $22,500 in 401(k) accounts and $6,500 in IRAs in 2023, the IRS said Friday.

    For 401(k)s, that’s an almost 10% increase from 2022’s contribution limit of $20,500. For IRAs, it’s a more than 8% rise from 2022’s limit of $6,000.

    As added context, the inflation-indexed bumps tax year 2023 income tax brackets and the standard deduction worked to approximately 7%.

    When the IRS increased the 401(k) contribution limits last year, it came to a roughly 5% rise.

    “Given the inflation we have been experiencing recently, the early announcement of this increase is encouraging,” Rita Assaf, vice president of retirement products at Fidelity Investments, said after the IRS released the 2023 contribution limits.

    Seven in 10 people are “very concerned” how inflating costs will impact their readiness for retirement according to a Fidelity study, Assaf noted. “Every dollar counts, and this increase will provide Americans with the opportunity to set aside just a bit more to help fund their retirement objectives,” she said.

    Older workers can save even more

    The 2023 contribution limits that apply to 401(k)s — plus 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan — are even larger for workers age 50 and over.

    Catch-up contribution limits rise to $7,500 from $6,500, the IRS said. Combine the catch-up contributions with the regular contribution limits, and workers age 50 and over can sock away $30,000 for retirement in these accounts during 2023, the agency said.

    Income phase-outs increase when it comes to possible deductions, credits and contributions

    Tax rules can let people deduct contributions to traditional IRAs so long as they meet certain conditions, pegged to issues like coverage through a workplace retirement plan and yearly income. Above phase-out ranges, deductions don’t apply if a person or their spouse has a retirement plan through work, the IRS noted.

    For 2023, a single taxpayer covered by a workplace retirement plan has a phase-out range between $73,000 and $83,000. That’s up from a range between $68,000 and $78,000 during 2022.

    For a married couple filing jointly “if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $116,000 and $136,000,” the IRS said.

    If an IRA saver doesn’t have a workplace plan but their spouse is covered, “the phase-out range is increased to between $218,000 and $228,000,” the agency noted.

    There are also changes coming for the Roth IRA, which people fund with after-tax money and then can tap tax-free later.

    Read also: Here’s when you should choose a Roth IRA over a traditional account

    The Roth IRA contribution limits also climb to $6,500. Retirement savers putting money in their 401(k) can’t also put pre-tax money in a traditional IRA, but they can contribute to a Roth account.

    Still, the eligibility to contribute to Roth IRA accounts is pegged to income, subject to phase-out ranges.

    In 2023, the income phase-out range on Roth IRA contributions climbs to between $138,000 – $153,000 for individuals and people filing as head of household. (That’s up from a range between $129,000 and $144,000, the IRS noted.)

    With a married couple filing jointly, next year’s phase-out range goes to $218,00 – $228,000. That’s a step up from this year’s $204,000 – $214,000 range.

    The income limit surrounding the saver’s credit, which is geared toward low- and moderate-income households, is also getting a lift. The credit lets taxpayers claim 10%, 20% or one-half of contributions to eligible retirement plans, including a 401(k) or an IRA. The credit’s income limits are climbing, the IRS said.

    The 2023 income limit will be $73,000 for married couples filing jointly, $54,750 for heads of household and $36,500 for individuals and married individuals filing separately, according to the IRS.

    Don’t miss: Opinion: It’s harder for me to look at my 529 balance than my 401(k) because I have a high school junior. Here’s some advice for parents on a similar timeline.

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  • Twitter shares slump after report that the U.S. mulls national-security reviews for some of Elon Musk’s ventures

    Twitter shares slump after report that the U.S. mulls national-security reviews for some of Elon Musk’s ventures

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    Shares of Twitter plunged in premarket trade on Friday after a report Biden administration officials are considering subjecting some of Elon Musk’s ventures to national-security reviews.

    Twitter
    TWTR,
    +1.18%

    shares plunged 9% to $47.64 in premarket trade, below the $54.20 per share buyout price.

    Bloomberg News reported late Thursday that some U.S. officials have become concerned in recent weeks by Musk’s Russia-friendly tweets and his threat to cut off Starlink satellite internet service to Ukraine. The Tesla
    TSLA,
    -6.65%

    and SpaceX CEO’s pending $44 billion acquisition of Twitter has also reportedly drawn concerns because of its foreign investors, including a Saudi prince, Binance Holdings — a crypto exchange that was initially based in China — and Qatar’s sovereign wealth fund.

    Citing anonymous sources familiar with the matter, Bloomberg said discussions are still in the early stages and officials are trying to figure out what regulatory tools are available to them. One option could be a national-security review by the Committee on Foreign Investment in the United States, the report said.

    Separately, Bloomberg also reported late Thursday that Musk’s lawyers and bankers are preparing paperwork for the Twitter deal to be completed ahead of a Oct. 28 deadline, and that relations between Musk and Twitter have turned cordial rather than adversarial.

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  • Will A Fractional Reserve System Exist On A Bitcoin Standard?

    Will A Fractional Reserve System Exist On A Bitcoin Standard?

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    This is a transcribed excerpt of the “Bitcoin Magazine Podcast,” hosted by P and Q. In this episode, they are joined by Eric Yakes to talk about the 7th property of money that Bitcoin introduced, fractional reserves on a bitcoin standard and what interesting Bitcoin projects are happening in the space right now.

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  • Judge dismisses GOP states’ challenge to Biden student debt relief program | CNN Politics

    Judge dismisses GOP states’ challenge to Biden student debt relief program | CNN Politics

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    Washington
    CNN
     — 

    A federal judge rejected a lawsuit brought by six Republican-led states challenging President Joe Biden’s student debt relief program.

    US District Judge Henry Edward Autrey said Thursday he was dismissing the case because the states had not overcome the procedural threshold known as standing, which requires that plaintiffs show that a policy is causing them direct and traceable harm.

    Student loan cancellations, worth up to $20,000 per eligible borrower, could begin on Sunday.

    The states are expected to appeal the judge’s ruling, sending the case to the 8th Circuit Court of Appeals, where it is likely to face a panel of conservative judges.

    The lawsuit was filed in a federal court in Missouri last month by state attorneys general from Missouri, Arkansas, Kansas, Nebraska and South Carolina, as well as legal representatives from Iowa.

    The states had argued in court documents that the Biden administration does not have the legal authority to grant broad student loan forgiveness, as well as that the program would hurt them financially.

    Lawyers for the government have argued that Congress gave the education secretary the power to discharge debt in a 2003 law known as the HEROES Act. They also argue that the plaintiffs don’t have standing to ask for an injunction.

    In another victory for Biden, Supreme Court Justice Amy Coney Barrett rejected a separate challenge to the administration’s student loan forgiveness program on Thursday, declining to take up an appeal brought by a Wisconsin taxpayers group.

    The Biden administration faces other lawsuits from Arizona Republican Attorney General Mark Brnovich, and conservative groups such as the Job Creators Network Foundation and the Cato Institute.

    But the legal challenge filed by six states that was dismissed Thursday was widely seen as the most formidable. It was the “most plausible legal challenge to the Biden Jubilee,” said Luke Herrine, an assistant law professor at the University of Alabama who previously worked on a legal strategy pushing for student debt cancellation, in a tweet Thursday.

    Biden’s student loan forgiveness program, first announced in August, aims to deliver debt relief to millions of borrowers before federal student loan payments resume in January after a nearly three-year, pandemic-related pause.

    While the application officially opened on Monday, the Biden administration has agreed in court documents to hold off on canceling any debt until October 23. Once processing begins, most qualifying borrowers are expected to receive debt relief within weeks.

    Under Biden’s plan, eligible individual borrowers who earned less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 annually in those years will see up to $10,000 of their federal student loan debt forgiven.

    If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness.

    This story has been updated with additional information.

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  • Snap stock falls nearly 25% after revenue hit by shrinking advertiser budgets | CNN Business

    Snap stock falls nearly 25% after revenue hit by shrinking advertiser budgets | CNN Business

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    CNN
     — 

    Snap’s bad year continues.

    Snap on Thursday reported revenue of $1.13 billion for the three months ending in September, a slight 6% increase from the year prior and less than Wall Street had expected, as the company confronts tightening advertiser budgets in an uncertain economy.

    In a letter to investors, Snapchat’s parent company said its revenue growth was slowed by several factors, including growing competition and jitters from the advertisers who make up its core business.

    “We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs,” the company said in the letter.

    Shares of Snap fell nearly 25% in after hours trading following the earnings report.

    Snap’s report kicks off what is expected to be a sobering tech earnings period, as layoff announcements, hiring freezes and other cost-cutting measures have become increasingly common in the industry amid fears of a looming recession.

    Snap helped set off a wave of anxiety among tech investors when it warned in May that the economy had worsened faster than it expected, cutting into its revenue and profit forecast for the quarter. In late August, Snap announced plans to lay off some 20% of its more than 6,400 global employees, or more than 1,200 staffers.

    Like other tech companies, Snap has had to confront headwinds from rising inflation, a stronger dollar and broader economic jitters that are leading some advertisers and consumers to rethink their spending in the United States and abroad.

    Snap has also faced increasing competition from fast-growing competitors like TikTok, and is still navigating its digital ads business in the wake of privacy changes implemented by Apple that have made it more difficult for marketers to target users with ads.

    There were some glimmers of hope in Snap’s report, including that the number of daily active users grew 19% year-over-year to reach 363 million in the third quarter. Its net loss was also smaller than Wall Street had expected, but the company nonetheless lost $360 million in the quarter, compared to a loss of $72 million in the year prior. Much of that loss ($155 million) came from restructuring charges related to layoffs.

    Snap declined to provide financial guidance for the final three months of the year. In its letter to investors, the company said: “We expect that the operating environment will continue to be challenging in the months ahead and believe the actions we are taking provide a clear path forward for Snap.”

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  • Biden’s quiet campaign season brings him back to familiar territory in Pennsylvania | CNN Politics

    Biden’s quiet campaign season brings him back to familiar territory in Pennsylvania | CNN Politics

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    CNN
     — 

    When President Joe Biden visited Pennsylvania on Thursday, he touted infrastructure investments that helped rebuild a collapsed bridge and raised campaign cash away from cameras with the state’s Democratic Senate candidate.

    Where he didn’t appear was a campaign rally stage.

    Three weeks before November’s elections, Biden’s visit to Pittsburgh and Philadelphia neatly demonstrated a political strategy focused on promoting his agenda and talking with donors rather than headlining stump speeches alongside vulnerable Democrats.

    He has been a frequent visitor to Pennsylvania, where Democratic Lt. Gov. John Fetterman holds a narrow lead in his race against Republican Dr. Mehmet Oz in the US Senate race. Trading his trademark sweatshirt and basketball shorts for a dark suit and tie, Fetterman greeted Biden at the airport alongside his wife.

    “You’re gonna win!” Biden said as he shook the candidate’s hand.

    Biden has visited the commonwealth nine times this year, including Thursday’s visit, and 18 times since he became president.

    “I’m a proud Delawarean, but Pennsylvania’s my native state. It’s in my heart. I can’t tell you how much it means to me to be part of rebuilding this beautiful state,” Biden said. “My Grandfather Finnegan from Scranton would really be proud of me now.”

    Still, despite the fondness, Biden’s visit was relatively low-key for a presidential stop weeks ahead of a critical midterm contest. He did not hold a rollicking campaign rally, opting for a smaller profile event with several dozen officials and workers from the bridge project.

    Biden’s approach borne out of political reality: While many of Biden’s accomplishments have been well-received by voters – and, in some cases, embraced by Republicans who voted against them – Biden himself remains unpopular and some Democrats continue to keep their distance as the midterm contests grow near.

    Departing the White House on Thursday, Biden bristled when asked why more Democrats weren’t joining him for political events.

    “That’s not true,” Biden said. “There have been 15. Count, kid, count.”

    Later, as he and Fetterman dropped by a Primanti Bros. sandwich shop near Pittsburgh, he told reporters he’d been requested to visit Nevada and Georgia, two states with tight Senate races.

    “We’re trying to work it out now,” he said. “I don’t know where I’m going. I’ve got about 16, 18 requests around the country.”

    Over the past weeks, Biden has worked to expand his list of achievements using executive power, including pardoning low-level marijuana offenders, canceling some student loan debt, reducing the cost of hearing aids and declaring a World War II training site a national monument.

    This week alone, he promised to sign a bill enshrining abortion rights into law if Democrats gain seats, outlined billions of dollars to invest in domestic battery manufacturing and released another 15 million barrels of oil from the nation’s strategic reserves as he works to bring down gas prices.

    Biden denied the oil announcement was politically motivated.

    “I’ve been doing this for how long now? It’s not politically motivated at all,” he said. “It’s motivated to make sure that I continue to push on what I’ve been pushing on.”

    Yet the timing of the release nonetheless came as Biden’s party looks with growing concern at the prospect of losing its congressional majorities next year, and the White House searches for steps to appeal to Americans.

    In Pittsburgh, the President spoke at the Fern Hollow Bridge, a four-lane steel span that collapsed into a snowy ravine in January. Biden happened to be visiting the city that day to speak about infrastructure, and the presidential motorcade made a detour to view the damage.

    “A complete catastrophe was avoided but it never should have come to this,” Biden said on Thursday. The President noted how quickly the bridge was bring rebuilt and said that while it wasn’t funded by his bipartisan infrastructure law, it was completely funded by the federal government.

    Biden said that “God willing” the bridge will be completely open in December, telling the audience: “I’m coming back to walk over this sucker.”

    Biden was joined by a slew of top Pennsylvania elected officials, most notably Fetterman, who is locked in one of the most closely watched midterm contests. Biden is also scheduled to join Fetterman later on Thursday for a fundraiser in Philadelphia.

    While the bridge’s reconstruction wasn’t directly funded by the bipartisan infrastructure law, a White House official said funding from the law allowed Pennsylvania’s Transportation Department “to move funds quickly to support this project, without having to slow down or interfere with other projects in the pipeline.”

    The rebuilding was funded through $25.3 million in federal funding appropriated to Pennsylvania in Fiscal Year 2021, the White House official said.

    The law allocated $40 billion toward bridge projects over five years. Since last October, repairs or replacements have begun on more than 2,400 bridges through funding from the infrastructure law, according to the White House.

    That measure has emerged as a central talking point for Biden during this year’s midterms. Candidates who might think twice about holding a political rally with Biden have seemed eager to appear alongside him at official events heralding improvements on rail lines, airport terminals or bridges. The President has hammered Republicans who voted against the bill but have nonetheless taken credit for projects made possible by the $1.2 trillion law.

    In planning Biden’s recent travel, including political events and official White House duties, his advisers have taken into account the sensitive political reality that some Democratic candidates in tough races would prefer he not visit their district or state in the final stretch to the midterms.

    But one Democratic official familiar with the White House’s thinking said an important overarching dynamic is that even the candidates who would rather not appear alongside Biden are still eager to run on his legislative accomplishments, describing it as a “halfsies” situation.

    “There are some campaigns that don’t want him to physically campaign in his state,” the official said. “But – people are running on his agenda.”

    Given the string of legislative victories that Biden’s party scored in the first half of the Biden administration – including the bipartisan infrastructure bill – even the events that are technically billed official White House business are effectively no different from political events these days, that official noted.

    “Every event is political now,” they said.

    Biden remains eager to visit key battlegrounds, according to his aides. Earlier this year, he voiced some frustration that more Democrats weren’t lining up to use him on the campaign trail.

    Now, Biden has settled into a midterm push that has him traveling mostly to states he won in 2020 while avoiding certain marquee races where his presence could be a drag on Democratic candidates.

    Other Democrats appear more welcome. Former President Barack Obama will hold campaign rallies for Democrats in Atlanta, Detroit and Milwaukee in the days before the elections. Sen. Bernie Sanders, the independent Vermont democratic socialist, will visit battleground states on a tour targeted to younger voters.

    The White House is working closely with the Senate and House campaign committees and will send the President where he could be helpful, aides said, and will avoid traveling to areas where nationalizing the race would be seen as a detriment to candidates.

    The logistics of presidential travel also complicate some travel, aides said, because campaigns must help foot the expensive costs of Air Force One.

    Still, at similar stages in their terms, Obama and former President Donald Trump were engaging in more traditional campaign-style events for candidates ahead of midterm elections, despite questions about dragging down candidates.

    Both saw their party lose unified control of Congress in their first midterm elections, a historical precedent Biden hopes to break – even as he avoids big political events.

    The White House has defended Biden’s travel plans, insisting he is traveling “nonstop” and intends to visit states “where he is needed” in the run-up to the vote.

    Still, in the weeks ahead of the midterms, Biden continues to spend most weekends at his homes in Delaware, including last weekend in Wilmington and this weekend in Rehoboth Beach.

    On Friday, he’ll stop at Delaware State University to tout his efforts at student debt forgiveness, before heading to his beach house. This week, the debt relief program Biden announced earlier this year went online, with millions applying to have some or all of their loans forgiven.

    In one of his previous trips to campaign in Pennsylvania, on Labor Day, Biden appeared before a small crowd with Fetterman at a union picnic in Pittsburgh. When the two men emerged from the union hall together, Fetterman raised his arms and pumped his fists.

    But when Fetterman spoke ahead of Biden, he used the opportunity to lambast his Republican opponent for owning multiple homes – without mentioning the President at all.

    During a 15-minute private meeting beforehand, Fetterman pushed Biden to begin the process of rescheduling marijuana, one of his top issues.

    A few weeks later, the White House said Biden would issue pardons for federal simple marijuana possession offenses and task members of his administration to “expeditiously” review how marijuana is scheduled under federal law, the first step toward potentially easing a federal classification that currently places marijuana in the same category as heroin and LSD.

    Biden himself has only mentioned the decision in passing. But Fetterman hailed the move and was quick to cite his conversation with Biden after the White House made the announcement.

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  • Tech earnings are coming and they probably won’t be pretty | CNN Business

    Tech earnings are coming and they probably won’t be pretty | CNN Business

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    New York
    CNN Business
     — 

    After months of layoffs, hiring freezes and other cost-cutting measures, big tech companies are set to provide the most detailed look yet at just how bad things have gotten for their businesses amid fears of a looming recession.

    Snapchat’s parent company, which tanked much of the tech sector in May with a warning about a worsening economy, is set to report third-quarter earnings on Thursday. Apple

    (AAPL)
    , Amazon

    (AMZN)
    , Facebook

    (FB)
    -parent Meta, Microsoft

    (MSFT)
    , Twitter

    (TWTR)
    and Google-parent Alphabet

    (GOOGL)
    will each report earnings results the following week.

    “People probably should be bracing themselves for these results,” said Scott Kessler, technology global sector lead at research firm Third Bridge Group.

    For years, the giants of Silicon Valley seemed almost immune to swings in the global economy. Even amid a pandemic, a trade war and other geopolitical uncertainty, the biggest names in tech only seemed to grow bigger and richer. But like other sectors in recent months, they have faced a variety of new challenges.

    Rampant inflation is eating away at consumers’ paychecks and reducing their ability to spend freely on tech products and services. Increased costs and recession fears have cut down on demand for online advertising and enterprise tech services. And other macroeconomic issues such as continued supply chain snarls and higher interest rates are stunting growth, analysts say.

    To make matters worse, tech companies must also confront the growing strength of the US dollar, which is currently trading at its highest level in two decades. That can mean sales made overseas are not worth as much, according to Angelo Zino, senior industry analyst at CFRA Research. A stronger US dollar may also make hardware products from companies like Apple less affordable for foreign consumers, which, as Zino points out, is problematic given “most of these companies are generating more than half their revenue outside the United States.”

    In a striking shift, most of the big tech companies are now expected to report slowing profit and revenue growth, or even year-over-year declines, for the three months ending in September, according to analyst estimates.

    Amazon

    (AMZN)
    , which is projected to be in the best shape, is expected to post essentially flat sales from the year prior. Meta’s revenue is projected to fall 5% year-over-year, marking the company’s second consecutive quarterly revenue decline. Net income at Meta, Amazon

    (AMZN)
    , Google and Snap is also expected to be down from the year prior.

    These dour projections come after many tech businesses were already showing signs of weakness in the prior quarter. Meta in July posted its first year-over-year quarterly revenue decline since going public in 2012 in large part due to decreased demand in the online advertising market that fuels its core business. Twitter

    (TWTR)
    , Snap, Google, Apple and Microsoft all also reported that shrinking ad budgets had taken some toll on their June quarter earnings.

    “We compare investor negative sentiment on tech today to what we have seen only 2 other times in our decades of covering tech stocks: 2008 and 2001,” Wedbush analyst Dan Ives said in a note to investors this week, referring to two prior recessionary periods.

    Many of the issues currently weighing on tech companies are unlikely to let up anytime soon, which is why industry watchers will be paying close attention to the guidance these companies offer for the rest of 2022.

    “More than anything, people really want a good understanding about what to expect” from the final three months of this year, which has “historically been the most important quarter for these companies,” Kessler said. Investors will likely want to know, for example, whether the online ad market has begun to stabilize ahead of the crucial holiday season.

    Negative results or future outlook could lead to increased pressure on tech firms to focus on their core businesses and cut back on big bets that aren’t expected to quickly product returns. Some of that is already underway.

    In recent weeks, Google announced it would shut down its gaming service Stadia, Amazon said it would stop testing a home delivery robot and Meta shut down its newsletter product, Bulletin.

    Meta may be in a uniquely difficult position. Last October, Facebook rebranded as Meta and ramped up investments to build a future version of the internet called the metaverse, which isn’t expected to be fully realized for years, if ever. But the Wall Street Journal reported last month the company was quietly reducing staff — and some analysts expect more cuts to come.

    “I do think you’ll see them announce cost cuts. I think they’ll reduce the workforce,” Zino said. “Meta is really boxed in a corner here. Their core business is in an environment where they’re not going to see much growth at all … and they don’t have any major revenue center outside of advertising.”

    What a difference a year makes.

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