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Daily Archives: September 15, 2020
The six biggest tech stocks have lost more than $1 trillion in value in three days – CNBC
Posted: September 15, 2020 at 3:08 pm
The six biggest tech stocks have lost more than $1 trillion over the last three days alone, but it's really just a dent coming off a huge rally that peaked last week.
Apple, which hit a $2 trillion market cap on Aug. 19, is down about $325 billion in that time period. Microsoft's down $219 billion, Amazon fell $191 billion, Alphabet cratered by $135 billion, and Tesla, which fell 21% on Tuesday to mark its worst single-day loss in its history, is down $109 billion in the last three days. Finally, Facebook is off by $89 billion.
"In general, if you think about the market cap loss over the last 3 days for Apple, it's about $325 billion. To help put that in perspective, that's about 1.5 Salesforces, and equivalent to Apple's projected revenues for the next calendar year," Jefferies' Jared Weisfeld told CNBC's "Fast Money" on Tuesday.
Despite the huge number, it's worth keeping in perspective given the tech giants' massive rise in value this year.
At the beginning of 2020, the six largest tech companies were worth about $5 trillion. On Wednesday, Sept. 2, they peaked with a value of $8.2 trillion. After Tuesday's close, they have a combined market cap of $7.1 trillion. While it's a big loss over a few days, these six companies are still worth $2.1 trillion more than they were at the beginning of the year -- despite the global coronavirus pandemic and record job losses in the U.S.
"I certainly haven't sensed any panic with clients and investors I've spoken with over the past couple of days... but no doubt about it the large cap tech has led us lower and today's action was certainly dramatic evidenced by Apple dropping below the $2 trillion market cap," Weisfeld said.
CNBC"s Robert Hum contributed to this report.
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LINDLEY: I Fled Tyranny Once; Now It Has Followed Me To America – The Hayride
Posted: at 3:08 pm
Immigrants who have lived under true communism know a thing or two about government oppression. We know what its like to live in fear of absolute authoritarian rule. We know the pain of surrendering your liberty for the sake of the socialist collective. We know how it feels to have no future, no matter how hard you try to improve your life.
Those of us who were lucky enough to escape to the U.S. have also learned that the American Dream is very real. Or at least it used to be.
After years of studying and hard work, I achieved my own American Dream by becoming a family physician. As a mother of five, a small business owner, and a proud member of the school board, I was convinced that the best days for me and my family were yet to come.
In retrospect, I should not have been so quick to take my newfound liberties for granted.
The COVID-19 pandemic, while medically devastating, has become a social disaster for this country. For the past few months, I have been shocked to witness how more and more Americans are willingly surrendering their civil liberties to the government, doing everything that the state tells them to do in the name of public health.
I understand that extraordinary events and tragedies often require us to take extraordinary action. This country, after all, retooled its entire economy to help defeat Nazi Germany in WWII. Every single American understood the importance of fighting a common enemy, and giving our brave soldiers the tools that they needed to win. But does this pandemic really rise to the same level as a world war? Where will our political leaders draw the line between a recommendation and a mandate? If this virus lingers for years, will we ever see our liberties restored?
Of course, there are some Americans who are noticeably exempt from the rules and regulations that the rest of us have to follow. For the past four months, radical socialists have organized riots in some of our countrys largest cities, disobeying social gathering protocols while breaking long-established laws. Remarkably, the leaders of most Democrat-run cities in America were reluctant to criticize this political movement, even when these so-called protests resulted in violence, looting, and death.
Many schools and businesses across the country, meanwhile, remain closed because local authorities are determined to stop the spread of the coronavirus. When has a social cause become more important than educating our children or feeding our families?
Every morning, I wake up and wonder how many insignificant rights we will lose today, from not being allowed to eat inside a restaurant in Philadelphia, to not being able to go to the gym in New Jersey, to not being able to go to church in California. Every morning, I am briefly reminded of my life in Yugoslavia, and how eerily familiar America is becoming to my former homeland.
Luckily, President Trump the same man who has been repeatedly portrayed as an authoritarian by the mainstream press has steadfastly resisted the urge to exploit the crisis for the sake of obtaining power. Time and again, he has encouraged local leaders to safely reopen their economies, and loosen other needless restrictions that have proven to be ineffective.
Despite the fact America is heading down a dark path at the moment, I still believe that this magnificent country has a bright future. I hope and pray that the American people remember their history, recognize the threat of unlimited government authority, and choose to defend their civil liberties this November.
Dr. Katrina Lindley, DO is a family medicine physician in Brock, Texas
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LINDLEY: I Fled Tyranny Once; Now It Has Followed Me To America - The Hayride
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Big Tech wants a bigger pie in India, but it just can’t seem to bypass Mukesh Ambani – Economic Times
Posted: at 3:08 pm
By Ari Altstedter and P R SanjaiBig Tech is clamoring for a bigger piece of Indias booming internet space, but that increasingly seems to mean going through the countrys richest man, Mukesh Ambani.
Ambanis Reliance Industries Ltd. is said to be offering to sell a stake of about $20 billion in its retail business to Amazon.com Inc., Bloomberg News reported this week. If Ambani succeeds in pulling off such a deal, it would mark another victory for the billionaire, who in recent months has secured $20 billion of investment in his digital unit from marquee names including Facebook Inc. and Google Inc.
The mere possibility of an Amazon investment reveals not only Ambanis market clout, but also how Indias business climate is changing as Prime Minister Narendra Modi cranks up nationalist rhetoric while the nation hurtles toward the first annual economic contraction in 40 years. Having seen multiple regulatory roadblocks thrown in their way, a tie-up with a powerful Indian ally has never looked more crucial for the worlds biggest internet companies. And no business person carries more heft in India -- known for its complicated bureaucracy and red tape -- than Ambani.
Better to CooperateI suspect the government somewhere is signalling that its better for multinational companies to come in with some Indian partner, said Arun Kumar, an economist and the Malcolm Adiseshiah Chair at the Institute of Social Sciences. So Amazon might decide its better to cooperate with Reliance than compete against it.
The 63-year-old Indian tycoon has identified technology and retail as future growth areas in a pivot away from the energy businesses he inherited from his father who died in 2002. Retail is the next frontier for Ambani, whose ambitions include creating a home-grown e-commerce giant like Chinas Alibaba Group Holding Ltd.
Lifes MantraIn one 33-minute address to the nation recently, Modi used the word self-reliance 17 times. The corona crisis has taught us the value of local manufacturing, local markets and local supply chains, Modi went on to say. Local is not only our need it is also our responsibility. Time has taught us that we will simply have to make local our lifes mantra.
Even so, India is increasingly important to Silicon Valley because its a one billion-plus person market thats still largely untapped. China is dominated by homegrown e-commerce players and largely shuts out global tech companies, while established markets in the West offer limited growth opportunities.
Though Amazon is already Indias largest e-commerce player, its ability to compete with domestic firms was hamstrung by an abrupt rule change in 2018 that limited foreign players to operating as e-Bay style marketplaces, rather than selling their own stock.
Entering E-CommerceNot long after, Ambani announced that his own sprawling conglomerate, Reliance Industries, would make an entry into e-commerce, leveraging its control of both Indias largest mobile carrier and biggest network of brick-and-mortar stores.
In response, Amazon tried to bolster its presence on the ground with an investment in Indias second biggest physical retailer, cash-strapped Future Group. But the rules restricting foreign ownership in that sector meant its investment was too little to halt Future Groups slide into financial distress.
Last month, it was Ambani who was waiting to snap up the majority of the companys operations for $3.4 billion. Faced with a regulatory disadvantage and a competitor only seeming to grow stronger, its not hard to see why Amazon might be tempted to make a peace offering now.
Reliance has brick and mortar, logistics, warehousing, and now online build out with its recent deals, said Chakri Lokapriya, chief investment officer at TCG Asset Management in Mumbai. It will take years of operational infrastructure for Amazon or other multinational companies to recreate that, and hence Reliance Industries is the preferred partner choice for their entry into India.
Regulatory LimboFacebook may have made a similar calculation. Its plans to turn its wildly popular WhatsApp messaging platform into a nationwide payments system have been stuck in Indian regulatory limbo for more than two years now.
Meanwhile, Reliance is pushing ahead with its own payment system, with its almost 400 million mobile subscribers as a built-in user base. But since their deal, Facebook and Reliance have announced that WhatsApp will at least be the main platform for Ambanis online grocery store, his flagship e-commerce offering, ensuring the social networking giant has a toehold in the Indian e-commerce market it covets.
Google, meanwhile, has announced plans to roll out a low-cost phone with Ambani which will run on its Android operating system. Previously Ambani had been selling his own low cost phones, which ran on a different operating system. Google, like Facebook, may have decided it was better to work with Ambani than against him. Amazon may wind up doing the same.
Business in India is taking the monopolistic approach, said Mathew Antony, managing partner of Aditya Consulting, a boutique legal advisory firm in Mumbai. It is increasingly becoming evident with the Facebook and similar investment deals that the large foreign business investments into the country is by default having a first right of refusal at the Reliance doors.
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Activists Are Fleeing Hong Kong By Boat To Taiwan – WIBC – Indianapolis News & Politics
Posted: at 3:08 pm
HONG KONG For Ha Sze-yuen, the sea surrounding Hong Kong is more than just a backdrop for sunsets and beaches.
The 73-year old views the ocean as his route to freedom a means of escape from the oppression and poverty of communist China.
On the night of April 16, 1975, Ha and a friend slipped past Chinese border guards and plunged their homemade, inflatable rubber dinghy into the dark water of Shenzhen Bay.
They then started paddling toward the bright lights of Hong Kong, which at the time was still a British colony.
Ha said he had already been caught and jailed three times during previous failed attempts to swim across the water. After the third attempt, he said, guards beat him so badly his mother cried when she saw his wounds.
I was fighting for my freedom, Ha said. I was afraid, but compared to life in China the fear was nothing.
Ha said he and his mother, a school teacher, were persecuted during the Cultural Revolution, a period ofpolitical chaos and violence unleashed by Mao Zedong, due in part to the fact his father had been a Kuomintang military officer who fled Communist rule after his side lost the Chinese civil war.
During the worst decades of Maos rule, thousands of Chinesefled south into Hong Kong.
In photos taken after Has final, successful attempt to make it to the city, the beaming 28-year-old stands looking over Hong Kongs Victoria Harbor, dressed in bell-bottom trousers and a fashionable striped shirt.
But 45 years later, Ha no longer sees this historic port city as a sanctuary.
Now I feel like freedom is being taken away gradually, he said, referring to an ongoing crackdown on political opposition in the city by the government and Chinese authorities, who recently imposed a national security law on Hong Kong, which has further limited space for dissent and left many activists fearing arrest.
The arrests of close to 10,000 anti-government protesters over the past year and the increasing targeting of opposition politicians and activists have created a phenomenon that would have been considered unimaginable to many just a few years ago.
Some Hong Kongers are now taking great risks to flee the city, even choosing to try to smuggle themselves out by sea to Taiwan.
Some Hong Kong activists are starting to see parallels between the current situation and the aftermath of the 1989 Tiananmen Square massacre, when hundreds of mainland Chinese protesters were smuggled by land and sea to Hong Kong via an organized pipeline called Operation Yellowbird. At the time, Hong Kong authorities did not return dissidents to mainland China.
This time, the territory we need to escape from (includes) Hong Kong, and Taiwan becomes the destiny of people, the hope of Hong Kong people, said Eddie Chu, a pro-democracy lawmaker.
Chu plans to resign his position in Hong Kongs Legislative Council, after the citys government recently postponed elections by at least a year on public health grounds.
As authorities crack down on dissent in Hong Kong, a cottage industry of small businesses and organizations supporting the citys protest movement is springing up in Taipei.
Aegis is a coffee shop decorated with giant murals depicting helmeted, goggled protesters as manga-style superheroes. Patrons are welcomed by a so-called Lennon Wall of Post-it notes with handwritten messages like Stand with HK and Free HK, a once-ubiquitous sight in Hong Kong at the height of last years protest movement.
The business employs activists who have fled Hong Kong.
According to the Taiwanese government, the number of Hong Kong residents settling in Taiwan more than doubled during the first six months of 2020, compared to the previous year.
One of the most famous recent emigres is Lam Wing-kee. For years, he ran Causeway Bay Books, a small store in the heart of Hong Kong specializing in sensational works critical of the Chinese leadership.
But in 2015, he and four of his colleagues disappeared from Hong Kong for months only to reappear on Chinese state TV in a televised confession admitting to illegal book trading.
In a 2016 interview with CNN, Lam accused Chinese security forces of kidnapping him to the Chinese mainland and forcing the confession.
Three years later, Lam left Hong Kong for good, and started a new Causeway Bay Books in Taipei.
Taiwan is a lot safer than Hong Kong, Lam said. I left a place where I may lose my freedom to a place where I have freedom.
He spoke to CNN sitting beside the cash register in his shop, where he also sleeps at night to save rent. His desk is draped with a flag bearing the slogan Liberate Hong Kong, Revolution of our Time.
The term has since been declared subversive by Hong Kong authorities, and those who use it could be prosecuted.
CNN has spoken to several frontline protesters who recently fled to Taipei to escape criminal charges in Hong Kong.
One 19-year-old man, who asked not to be identified, said he boarded a commercial flight to Taiwan in January, before the coronavirus pandemic triggered a lockdown.
Its hard for me, said the teenage exile, adding he felt homesick and wanted to return. I still want to (take part in) the political movement (but) theres no room for that in Hong Kong right now.
Other exiles in Taiwan said they had heard of fellow activists trying to escape by sea.
Right now everyone somehow is trapped in Hong Kong, said an older activist, who flew to Taiwan in July 2019 after participating in the storming and vandalizing of Hong Kongs Legislative Council.
I cant think of how we should keep fighting, or what young protesters should be doing now, he added. If we have a chance, we should escape.
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Activists Are Fleeing Hong Kong By Boat To Taiwan - WIBC - Indianapolis News & Politics
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Peace Talks Begin Between Taliban And Afghan Government – NPR
Posted: at 3:08 pm
Abdul Salam Hanafi (right), a member of the Taliban negotiating team, heads to the opening session of peace talks between the Afghan government and the Taliban in Doha, Qatar, on Saturday. Hussein Sayed/AP hide caption
Abdul Salam Hanafi (right), a member of the Taliban negotiating team, heads to the opening session of peace talks between the Afghan government and the Taliban in Doha, Qatar, on Saturday.
Afghanistan's warring factions have officially begun what is likely to be a long and arduous process of negotiating a peaceful and prosperous future after nearly two decades of war.
Representatives for the Afghan government and the Taliban met in the capital of Qatar on Saturday to discuss their aspirations and decide on a framework for a lasting peace. The Trump administration paved the way for the negotiations the first direct talks between the two sides when it inked a peace agreement with the Taliban in February.
The talks in the city of Doha come 19 years after al-Qaida killed nearly 3,000 people in the Sept. 11 attacks. The attack was the deadliest act of terror in U.S. history and sparked war in Afghanistan, as the U.S. and its allies overthrew the Taliban regime for harboring the terrorists. But in the years since, Taliban militants have reclaimed control of much of the country.
Several concessions were made to reach today's peace talks. In exchange for a Taliban promise to renounce al-Qaida and prevent terrorist attacks, the U.S. and its allies have promised a complete troop withdrawal from Afghanistan by next spring.
When it signed the peace deal with the Taliban in February, the U.S. had approximately 12,000 military personnel in the country. Officials say the U.S. is on track to reduce its presence to 4,500 troops by the end of November. At its peak, the U.S. had 100,000 troops in the country.
For its part, the Afghan government has promised to release 5,000 Taliban prisoners in exchange for Taliban release of 1,000 Afghan security forces.
Abdul Ghani Baradar, one of the Taliban's founders, said he envisions an Islamic system that embraces all Afghans. At the opening ceremony, he urged patience on both sides.
"The negotiation process may have problems, but the request is that the negotiations move forward with a lot of patience, with a lot of attention, and it should be continued with such kind of attention," he said. "With full honesty, we continue the Afghan peace negotiation, and we try for peace and tranquility, we will pave the ground in Afghanistan."
Abdullah Abdullah, who heads Kabul's High Council for National Reconciliation, said that even if all sides can't agree on every detail, they will be "peace heroes" if they can create a political system based on Islamic principles that preserves the rights of all people.
In a video message to open the negotiations, U.N. Secretary-General Antnio Guterres said the talks present a "major opportunity to achieve the long-held aspirations of the people of Afghanistan for peace."
"Afghans themselves must determine the content and nature of the negotiations," Guterres said. "An inclusive peace process, in which women, youth and victims of conflict are meaningfully represented, offers the best hope of a sustainable solution."
The negotiations will endeavor to establish a framework for a peaceful postwar society after American troops return home. Gender equality and the rights of ethnic and religious minorities will be front and center, as the two sides confront a history of oppression by the Taliban.
The U.S. won't be directly involved in the peace talks. But the U.S. is still willing to offer suggestions for what a postwar Afghanistan could look like. In remarks at Saturday morning's opening ceremony, Secretary of State Mike Pompeo urged the two sides to consider adopting a democratic form of government.
"In the United States, we have found that democracy notably, the principle of the peaceful rotation of political power works best," Pompeo said, according to prepared remarks. "Democratic systems reflect the choices of the majority while protecting the rights of the minority. This model has yielded great peace and prosperity for us and other democratic nations."
The two sides are under heavy pressure from the people of Afghanistan to come to an agreement as quickly as possible. U.S. special adviser Zalmay Khalilzad, who helped facilitate the talks, acknowledged that won't be easy. "There's a lot of mistrust," he told reporters Saturday. "This war has been going on for a long time, and compromise has not been easy historically in Afghanistan."
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International action against oppression of illegitimate government in Belarus is urgent – thedailynewnation.com
Posted: at 3:08 pm
Friday, September 11, 2020
Thousands of demonstrators gathered in Minsk on Saturday at the spot in the Belarusian capital where a protester died in clashes with police, calling for the country's authoritarian president, Alexander Lukashenko, to resign after 26 years in power. The protests have gone on for one month since the results of the presidential election in which election officials say Lukashenko won a sixth term in office but which is reality were fraudulent.
Despite harsh police action against the protesters, including the detention of 7,000 people, the demonstrations have swelled into the largest and most sustained wave of protest since Lukashenko took power in 1994.
The Belarusian president, Alexander Lukashenko, has used his first interview since mass protests erupted against his rule to say he does not plan to step down soon. Lukashenko spoke to a group of pro-Kremlin Russian journalists including the editor-in-chief of Russia Today, Margarita Simonyan, and made it clear he plans to fight to cling on to power.
Lukashenko is in power shamelessly by bribing the army and the police for using to suppress the people. He is in power rigging the election and terrorising the people. Against his own people he is inviting Russian military help also.Unfortunately Putin has decided to send in special forces from Russia--perhaps thinking that a friendly dictator is better than a non friendly democratic government, no matter that Lukashenko has no popular legitimacy to remain in power. It is useless talking human rights when one can continue in power with the power of the gun and no popular election.
The main problem for Belarus is that Russia may try to prop up Lukashenko so he can stay in power. He has been able to resist Russian interference for 20 years but the danger is that if Lukashenko realises that he can't stay in power he may encourage Russia to prop him up. Russia has previously used chances like these to annex territory--like it did in 2015 when it annexed the Crimea but may instead help Lukashenko to remain in power. To stick to power for some people is like drug addiction and they will be saved by foreign power to keep their own people as slaves.
So what does the future hold for Belarus--rule under Lukashenko is probably the worst thing which can occur. It is time that Lukashenko realizes that he has outlived his usefulness to the Belarusian people and just go quietly. Oppressing them with his security forces and faking election results for the umpteenth time will not endear him to the people. He must not act like his godfather Putin and cling on to power. He must realize that the people can throw him out and go.
Modern dictators with the support of the army and the police have become too power for the people to change. The people's election is not necessary for government to be legitimate. Only international community can ensure that the government must have popular legitimacy.
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Since Modi came to power, Muslims have faced systematic, chaotic form of cruel oppression: Sharjeel Usmani – TwoCircles.net
Posted: at 3:08 pm
Former Aligarh MuslimUniversity(AMU) student leader has written a public letter weeks later after he was arrested by UPs anti-terrorist squad (ATS) and subsequently released. TwoCircles.net reproduces the letter in its entirety.
Salam
I thank each one of you for praying for me and my family. It is only because of your support and prayers that I am able to write to you all. It was not possible for me to write from jail. In a country that celebrates the writings of its leaders which were written in jail, political prisoners are not allowed to own pen and paper. I had to wait to write to you.
Wait is a generous word, it demands one to stay where one is until a particular time or event. It denotes impatience and commands patience. To wait is the right thing to do, most of the time. We, however, arent living in a time that can be included in most of the time. We are in fact past all the fields that could hold us back to wait for the trouble to end. The cost of waiting is too much, perhaps more than everything we own. But what do we own? Nothing that could be summed up as a dignified living. To wait is also a choice we make. Everything we own, we lose depends on the choices we have made. We choose what is convenient, most of the time. But, as I said, we arent living in a time that can be included in most of the time. To not choose what is convenient is sacrifice. To sacrifice is even more generous than waiting. It is to give up something valuable. Now, I urge, is the time to give up waiting.
Ever since the Narendra Modi led Bharatiya Janata Party (BJP) came to power, Muslims in India have faced a systematic, yet chaotic form of cruel oppression. Our membership in the India society has been cancelled, informally, and the cancellation is lined up to be formalised with the duo of the Citizenship Amendment Act (CAA) and National Register of Citizenship (NRC). The manifestation of our informally cancelled membership from the Indian society is multifold. From the ongoing witch-hunting of activists, students and citizens by the Indian law enforcement agencies, to the dominantly hateful Hindutva cultural symbols, to the ongoing and unending lynchings it all is to warn us of the declaration that our lives and everything related to our lives is of no value. Forgive me for revealing that what possesses no value is taken for granted.
Our response to this unjust calculation is convenient. It must also be unsatisfactory, I suspect. Rohit bhai in his last letter wrote the value of a man was reduced to his immediate identity and nearest possibility. To a number. To a thing. Never was a man treated as a mind. Our valuation is even worse. A number in a list with the header total deaths. A thing with no value, and no life. I apologize for being repetitive but everything we own and we lose depends upon the choices we have made. This is where I have disagreements. I have disagreements with our affinity for our convenient response. We also call it our fight while describing it.
Our response altogether has been of an abiding citizens. To a government that does not consider your being, and has proactively worked to ensure that your life be taken for granted by your fellow citizens; we respond by being law abiding. In close quarters, we also wait. Wait for all of this to get over. We secretly, and collectively pray that this government is defeated in the upcoming elections. Even if this government is mysteriously defeated, there exists no immediate cure for the alarming mass radicalization of Hindus. We also try to fool ourselves by repeating everything would be alright, we have people on our side, we have allies over and over again into our own ears. We might as well have the whole world on our side, but that would mean nothing if our entire response is to wait. With our allies, we patiently wait.
I am not sure if it has to be spoken out loud, but, I feel that now is the time to be rogue. Nobody cares about the law abiding attitude of the persecuted in a excellently functional lawless society. Muslim activists do not exist to count the dead bodies of their fellow brothers and sisters, to pressurise the government to release every next person incarcerated, and then celebrate their release after several months of illegal imprisonment. In case we didnt notice, with every one person released, there are dozens going in. One can only pressurise someone who cares. This particular government, my dear people, does not care. Students, in their college, sit on hunger strike against a new rule because they have faith that the college administration would not let them die. The same is not the case with this government.
We cannot pressurise oppressors to not oppress. We can only compel them, force them. Fifty years from today, if our history is written accurately, we will find two sets of people in our community. The bad ones and the good ones. The bad ones would be those who remained silent throughout our persecution, the good ones would be those who waited for the persecution to happen only to condemn it with empty slogans, colorful posters and routinely boring hashtags. Fifty years from now, people would not be very pleased with even the good ones such as me.
I urge you to give up on waiting. I urge you to join the fight while you can. I urge you to present before this government and its followers an option to mass-arrest and mass-lynch hundreds or thousands or whatever number of people who are willing to actually fight back. That is the choice weve to make. If this is not possible today, let us all work to make it possible whenever it can be possible. This oppression is not going to end anytime soon. Hindutva must be defeated for a just society to exist. We need civil disobedience.
Js khet se dahqan ko mayassar nah roz,Us khet ko har Khosh e Gandum ko jal do.
In solidarity,Sharjeel Usmani
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When Tech Giants Want to Play Banker – The Regulatory Review
Posted: at 3:08 pm
In financially uncertain times, regulators should be attentive to Facebooks plan to issue a cryptocurrency.
Brace yourself: A new financial crisis is on the way. In addition to the economic effects of the novel coronavirus pandemic, economic experts predict that other financial troubles will arrive sooner rather than later as the world economy, struggling to get out of the 2008 recession danger zone, is now stuck in a deep low-growth curve. Financial regulators should be more cautious with local and global markets behavior and act before time runs out.
In 2019, China signaled the acceleration of its efforts to create a national cryptocurrency in response to Facebooks endeavors to issue its own digital currency, Libra. Facebook announced a goal to reinvent money for the internet age, creating a global financial system based on its own cryptocurrency.
Although the media mainly expressed concerns over data collection practices within this race, I assert that regulators must also address serious and urgent financial regulation issues when considering the current worldwide financial instability, especially with the growing importance of digital payment methods and currencies due to social distancing practices.
This urgency arises from the fact that China, the worlds second economic power, is still rushing to keep up with Facebooks effort over the issuance of a cryptocurrency as if Libra were a threat. If Libra is in fact a menace to Chinas power, then regulators should acknowledge this peril and respond efficiently to avoid dragging the economic growth curve deeper in depression.
More objective issues, however, should prompt U.S. monetary and financial regulators overseeing Facebooks activity, such as the Federal Reserve System, to take action on the Libra project. To appreciate basic insights on how a cryptocurrency can jeopardize economic stability, compare the Libra plan to Bitcoins growth as an important cryptocurrency in the past decade. The Libra may become too powerful and economically unpredictable if issued.
Considering Bitcoins market strength, Libra may become too big to fail. Currently, the market capitalization of Bitcoin is around $190 billion, and the value of the 30 most valuable traded cryptocurrencies exceeds one-third of the market capitalization of Facebook. Moreover, around 5 percent of Americans invest in Bitcoins. If Bitcoin failed or suddenly became regulated in a way that limits its operation, it would undoubtedly have a substantial impact in the local financial system.
Facebook has over 2 billion monthly active users, while Bitcoin has only about 7 million active users. If only 1 percent of Facebooks active monthly users invest in Libra, it will already surpass the number of Bitcoin investors. Hence, if users already consider the Bitcoin system too big to fail, with a 2008 bailout-like call for the former largest Bitcoin exchange that faced bankruptcy in 2014, the hypothetical failure of an even larger Libra could shake the global economy.
For this reason, senators at a U.S. Senate Committee on Banking, Housing and Urban Affairs hearing in July 2019 questioned Facebook executives over the plan to create Libra. Although the hearing centered on the illicit possibilities of digital currencies, senators expressed the concern that Facebook could become the largest banking institution overnight. As several senators suggested, the major problem is that the company would shift its businesss main objective to currency provision, thus shifting the existing too-big-to-fail concern from the core of the financial sector to the tech area.
Although Facebook walked back plans for Libra in April 2020 in response to stakeholder pressure, opting instead for Libra to act more like a digital payment than a global monetary alternative, concerns remain about the projects scope.
Taking into account the Bitcoin outcome, Libra has real potential to reshape the financial system in an unpredictable way. The emergence of Bitcoin has already hindered central banks ability to regulate the financial system, due to a new technological system that regulation can hardly reachthe blockchain. Also, businesses, industries, and services beginning to accept cryptocurrencies as a payment method has hampered central banks abilities to regulate their national currency.
In addition, if the other three big tech companies decide to stand in competition against Libra, what could happen to the U.S. financial system? The four major U.S. tech companies together have a market capitalization of around one-fourth of Chinas GDP. Considering such values, such a worst-case scenario could change the global economy beyond modern predictions or expectations.
Accordingly, in a U.S. House Committee on Financial Services hearing last year, Federal Reserve Chair Jerome Powell reportedly expressed the same concerns when addressing the Libra plan. Powell signaled consternation about financial stability and consumer protection, considering the size of Facebook and the unforeseeable effects of the currencys issuance on the market.
Crypto-asset advocates, on the other hand, claim that Bitcoin could actually be a way out during financial crisis, as Bitcoins system exists unbound by any particular national economic system. Bitcoin might function as a safe haven for investors in unstable market environments. At the same time, Libra developers advertise that the projects mission is to promote economic empowerment and financial inclusion, ultimately leading to financial stability by increasing consumer welfare and strengthening national economies.
In any case, innovation should be welcomed and viewed with optimism. Prudence, however, is a virtue that regulators should fully exercise, especially in times of uncertainty.
If now is a time for economic awareness to endure a long financial winter that may arrive, it is also time for regulators to focus maximum attention on initiatives that may destabilize the financial system. In addition, regulators must follow up and understand quickly adjustments to these technological innovations, such as Facebooks recent pivot on its vision for Libra, to achieve proactive oversight of substantial financial ventures before it is too late.
Gustavo Costa is a 2020 LLM graduate of the University of Pennsylvania Law School.
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When Tech Giants Want to Play Banker - The Regulatory Review
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CNN’s Jake Tapper blasted for ‘gaslighting’ over tweet accusing Trump of approving Chinese concentration camps – Fox News
Posted: at 3:08 pm
CNN anchor Jake Tapper was accused of "gaslighting" his Twitter followers over a post suggesting that President Trump has beencomplicit in the human rights abuses that are being committed by the Chinese government againstUyghur Muslims.
On Sunday's installment of "State of the Union," Tapper condemned Disney for filming its live-action remake of "Mulan" in Xinjiang, where Uyghur Muslims are being held in concentration camps, and thanking eight Chinese government entities in the film's end credits. He also called out the NBA over reported human rights abuse allegations from the league's training academies in China.
He also blasted President Trump over remarks he allegedly told Chinese President Xi Jinping approving the existence of such Muslim concentration camps, according to claims made in former national security advisor John Bolton's book.
CNN'S JAKE TAPPER PESTERED GOP CANDIDATE SEAN PARNELL FOR STATEMENT DISMISSING SCANDALOUS DM: SOURCE
Future generations will be ashamed to read how companies that consider themselves progressive such as the @NBA and @Disneyjoined with conservatives including @realDonaldTrump to sanction concentration camps and human rights abuses by the Chinese government against Muslims.
However, critics fact-checked Tapper, claiming the Trump administration has done far more to condemn China's treatment ofUyghur Muslims than the newsman suggested to his 2.6 million Twitter followers.
"Jake is using word 'sanction'here to mean 'give permission to'- apparently referencing Bolton book allegations - but the tweet omits that Trump (with support of conservatives & Congress) sanctioned (other definition) numerous CCP officials & entities for oppression of Uyghurs," Washington Examiner reporter Jerry Dunleavy said.
CRITICS BLAST CNN'S JAKE TAPPER FOR 'LYING' AFTER CLAIM ABOUT GOP CANDIDATE SEAN PARNELL
"President Trump signed the Uyghur Human Rights Policy Act into law back in June and put sanctions on several members of the CCP for their human rights abuses against Uighurs, as well as several Chinese corporations complicit in Uyghur detainment back in July," Daily Caller's Greg Price similarly said.
"Well Trump just issued a set of sanctions blocking goods from Xinjiang. So technically Disney is less proactive on human rights than Trump is," journalist Zaid Jilani wrote.
"This is gaslighting I never expected from you. This is so beneath you," podcast host Lyndsey Fifield told the CNN anchor.
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Tapper has been under fire in recent weeks over his attempt to convince GOP congressional candidate Sean Parnell to not run against Democratic incumbent Rep. Conor Lamb.
Multiple sources alleged that the CNN anchor has been pestering Parnellto issue ajointstatement with him in an attempt to downplay his involvement in the Pennsylvania race.
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IPOs have gone red hot in 2020: Here are 7 big names to watch – Bankrate.com
Posted: at 3:08 pm
The coronavirus pandemic may have put a damper on the stock market for a while, but the bull market has come roaring back and with it, the initial public offering, or IPO, market. Investors should expect the last part of 2020 to remain strong, say experts, with the market expected to debut a number of big names such as Airbnb and Snowflake.
While a shaky market typically shutters the window for new capital, especially for marginal firms, this years crop of IPOs seems to have been a bumper one, at least in tech areas. The market has been on a tear, and IPO sponsors are looking to take advantage of investors increasing appetite.
The IPO market is on fire, says Michael Gray, partner at law firm Neal, Gerber & Eisenberg in the Chicago area and head of the firms private equity, venture capital and growth companies practice. With the caveat of some key risk areas, Gray doesnt see a slowdown in the IPO market this year.
While the market remains strong, companies are looking to go public, with major venture capital or private equity companies looking to debut their portfolio companies on the market. But is this a case of large investors cynically looking to cash out and slide through a closing door while the market stays strong, or really playing offense with the expectation of a healthy market?
The latter, says Sam Hendel, president and portfolio manager at Levin Easterly Partners in New York City. Theyre hitting the funding window when they need to hit the window, and its not just about a cash grab while the market holds up. Everyones concerned about COVID, but these companies are doing well and they want to go public.
I think theres a longer-term opportunity to take advantage of the market here, says Gray.
Theres nowhere else to put your money right now with interest rates being virtually zero, says Gregory Sichenzia, founding partner at law firm Sichenzia Ross Ference in New York City. Because of this, there is a lot of momentum in the market and companies are ready to take advantage of that.
However, the strongly bullish move in the market since May has given some investors pause, and many are pointing to this melt-up as a case of 1999-2000 all over again. But in 2020s haul of potential IPOs, many dont see the bubble valuations that characterized the dotcom stocks.
The companies that were seeing going public in the tech world today are performing, says Ed Zimmerman, chair of the tech group at law firm Lowenstein Sandler in New York City.
The pandemic may have dampened some spirits, but it hasnt always put a hit on companies, especially those in the tech sector, such as software-as-a-service (SaaS) stocks. In some cases, the pandemic has actually strengthened the hand of some tech companies, accelerating the market dynamics, such as digitalization, that make them a more valuable investment.
With many normal sectors such as hotels, airlines and energy hit by the pandemic, tech companies are the clear winners in the current COVD-19 world, says Frederik Mijnhardt, COO and CTO of equity advisory firm Secfi in Amsterdam. Crowding-in of investors in tech stocks has contributed to inflating share prices and valuations.
So without a huge negative effect from the pandemic sometimes the reverse and solid performance, some major IPOs appear close to hitting the market. They include:
While this housing-sharing app hasnt been unaffected by the pandemic, its more resilient than some traditional peers. At one point in 2020, bookings had fallen by 90 percent, but the company has seen a remarkable rebound, enough to encourage the company to file in mid-August for an IPO.
This cloud data company has been hot in 2020, and its valuation has increased dramatically. This IPO received a vote of confidence from Berkshire Hathaway via a $250 million pre-IPO investment. While Berkshires legendary investor Warren Buffett typically stays away from IPOs, one of his key investors likely made the buy.
This food delivery app likely benefited significantly from the pandemic, at least in the short term, as stay-at-home diners hit it up to bring restaurant food to them. The company looks like it might debut in the fourth quarter.
This secretive data-mining company is about to go public via direct listing, an unusual way to get onto the market (recently used by Slack and Spotify) that doesnt involve raising money from investors. The company is set to debut in a few weeks.
This grocery-delivery app is looking to debut, but it might not make it to market in 2020. Still, plenty of eyes are on the quickly growing company and expect it to debut in the not-too-distant future.
This project and productivity software company is also going public via a direct listing, and wont raise money in its debut. Its looking to reach the market by the end of September.
This free trading app mainly for stocks and crypto is one of the most popular investing platforms in the brokerage industry, with millions of users signing up. During the pandemics early days, it became a poster child app for stay-at-home parents and those who wanted in on the action. The extent of those stories may be overblown, but theres no question that the pandemic made Robinhood the face of the industry for many.
While those are some of the brand name IPOs, many others fly under the radar, and theyre popular among a sophisticated kind of trader. Theyre called SPACs, and these IPOs may be even hotter than those of big tech companies.
SPAC stands for special purpose acquisition company, and theyre also known as blank check companies. They raise money from investors, often in the area of a few hundred million dollars, and then look for an acquisition in the private market. SPACs have a deadline to find a deal (often a couple years), and if they dont consummate a transaction they have to return the money to investors who own the stock. In the interim, the funds in the SPAC may earn a pittance.
By total capital raised, SPAC IPOs in 2020 have already surpassed the performance of 2019, when the market as a whole was strong. Exactly 82 SPACs have gone public in 2020, as of September 9, according to Renaissance Capital, and theyve raised a record $31 billion, with a few months left in the year still to go. Noted investor Bill Ackman brought one public in July with more than $4 billion to invest.
This years total performance dwarfs last years, when SPACs raised about $13.6 billion, an already strong showing from an oddball niche followed mostly by pros.
SPACs may offer an interesting possibility for investors. They let investors see what deal a company signs, allowing them to bail on the deal if they dont like the acquisition. Hendel calls it a free look at what the sponsor finds.
But SPACs can have some downsides, too. And many dont complete a transaction. In fact, since the start of 2015, less than half of publicly traded SPACs have consummated a deal.
SPACs what happens if they clock out before they can roll out a company? asks Zimmerman. They may close deals, but they may catch falling knives to complete their mandate.
That is, they may rush to buy an unattractive stock just to get a deal done. So while SPACs may be the province of more sophisticated investors, that doesnt make them sure-fire moneymakers.
The biggest risk to the IPO market is general weakness in the stock market. Funding for IPOs is some of the first to dry up as the market gets frothy, so IPOs depend on a stable climate. Thats not exactly the setup we are likely to see two months before a highly contested presidential election.
While many experts remain quite bullish, theyre not being naive about the risks to the market.
Im bullish on the market with the caveat that theres a lot of major risks, says Gray, noting the election specifically. But he notes: The liquidity created by the Fed and other governments cannot be ignored. Stimulus will make a massive difference to keeping the market going.
Zimmerman thinks the election will be enormously important for the markets, and it has the potential to throw stocks in one direction or the other. He says IPO sponsors need to think carefully about the timeframe for their investments and how they might deal with fallout from November.
Hendel also remains bullish: Well be strong right up into the election and maybe after, with a pause around the election.
If capital dries up, that could lead companies to take an alternative path to get into the public market, says Meredith Beuchaw, head of mergers and acquisitions at Lowenstein Sandler. Companies are prepping for potential disruptions, even if they dont come to pass.
Companies are finding creative ways to get to market IPOs, SPACs, she says. Theyre dual-tracking an entry into public markets, perhaps through a merger or acquisition.
And of course, everyone sees the potential for the COVID-19 pandemic to disrupt things further. But that doesnt keep many market watchers from being ultimately bullish. They advise watching investors reception to upcoming IPOs to judge the overall tone of the market.
I dont see a slowdown in IPO activity, says Gray.
If the market as a whole holds up, IPOs should continue to hit the market and remain robust. While there are no guarantees, investors have shown an abnormally high level of animal spirits as the government and the Fed have flooded the market with liquidity. However, coronavirus outbreaks and the uncertainty of continued government stimulus pose potential risks to the IPO market continuing to burn brightly.
And as with any stock, if youre buying it, you need to carefully analyze it. Novice investors are often best served by sticking to a broadly diversified index fund.
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IPOs have gone red hot in 2020: Here are 7 big names to watch - Bankrate.com
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