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☆ New reports say business travel isn’t going back to normal — ever
▼ + stars: | 2023-04-24 | by ( Monica Pitrelli | Rob Goss | ) www.cnbc.com time to read: +5 min

The days of high-flying, big-spending business travel may be over for good. As a new report by research company Morning Consult declared: Business travel will never return to normal. Tighter corporate budgets and new ways of virtual working have permanently changed business travel, according to the report, titled "Business, but Not as Usual." A different business travel model is slowly but surely becoming entrenched, crystallizing a "new normal" for the industry, according to the report. Bright spots for business travelBut there are several bright spots for those cheering the robust return of business travel, according to the reports.

☆ Intel ends its bitcoin mining chip series
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: +1 min

April 18 (Reuters) - Chipmaker Intel Corp (INTC.O) said on Tuesday it has discontinued production of its bitcoin mining chip series, just a year after its introduction. A rout in the cryptocurrency market hurt some chip companies including Nvidia Corp (NVDA.O), whose high-end graphics chips became popular for crypto mining. Intel expects to stop taking orders for the series, called Blockscale, by October 20 this year and end shipping by April 20 next year, according to a document on the company's website. "As we prioritize our investments in IDM 2.0, we have end-of-lifed the Intel Blockscale 1000 Series ASIC while we continue to support our Blockscale customers," a company spokesperson said. Argo Blockchain (ARB.L), Block Inc (SQ.N), Hive Blockchain Technologies(HIVE.V) and GRIID Infrastructure were Intel's first customers for the chips.

☆ California prosecutors suggest Cash App founder was slain in dispute over suspect's sister
▼ + stars: | 2023-04-14 | by ( Dan Whitcomb | ) www.reuters.com time to read: +3 min

[1/3] Nima Momeni, the 38-year-old founder of software company Expand IT, appears before Judge Christine Van Aken, accused of the stabbing murder of Cash App founder Bob Lee in a courtroom sketch in San Francisco, California, U.S. April 14, 2023. REUTERS/Vicki BehringerApril 14 (Reuters) - The tech executive charged with stabbing Cash App founder Bob Lee to death in San Francisco confronted him earlier in the evening about his ties to the suspect's younger sister, prosecutors said on Friday in court documents that outlined a possible motive. Momeni, founder of the Bay Area software company Expand IT, briefly appeared in a San Francisco courtroom on Friday, where a judge postponed his arraignment until April 25. The sister and her husband both attended Momeni's court hearing on Friday. Block Inc-owned (SQ.N) Cash App allows users to transfer money through a mobile application, which the company touts as an alternative to traditional banking services.

☆ Suspect arrested in stabbing death of Cash App founder Bob Lee -media
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +2 min

April 13 (Reuters) - San Francisco police arrested a man on Thursday morning in connection with the fatal stabbing of Bob Lee, according to local media reports, just over a week after the tech executive succumbed to his injuries in the hospital. The San Francisco Police Department did not immediately respond to a request for further information. Lee, who founded Block Inc-owned (SQ.N) Cash App, is believed to have known the suspect. The two reportedly were driving in downtown San Francisco in Momeni's car when an alleged confrontation led to Lee's April 4 stabbing. The San Francisco Chronicle also reported news of an arrest, citing San Francisco Board of Supervisors President Aaron Peskin and other city officials, without disclosing a name.

☆ Cash App founder Bob Lee stabbed to death in San Francisco, says father
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +1 min

April 5 (Reuters) - Block Inc (SQ.N)-owned Cash App's founder Bob Lee was stabbed to death in San Francisco on Tuesday, according to a Facebook post shared by his father. loading"I just lost my best friend, my son Bob Lee when he lost his life on the street in San Francisco early Tuesday morning," said Rick Lee in a post which linked a TechCrunch article on the stabbing. The San Francisco Police Department said late on Tuesday that a 43-year-old man was stabbed early in the day and succumbed to injuries in the hospital. Cash App allows users to transfer money through a mobile application and is touted by the company as an alternative to traditional banking services. Lee was the chief product officer for cryptocurrency company MobileCoin, where he was also previously an early-stage investor and adviser, the company said on Twitter.

☆ Hindenburg says Block response confirms it inflated Cash App user counts
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +1 min

March 31 (Reuters) - U.S. short seller Hindenburg Research said on Friday Block Inc's (SQ.N) response to its allegations confirmed it had reported inflated user counts on its Cash App to investors for years. The payments firm led by Twitter co-founder Jack Dorsey said on Thursday that 44 million of its more than 51 million monthly active customers on Cash App were verified through its identity program as of Dec. 31. "Block's newly reported internal estimates also show that its previously reported 51 million monthly transacting actives as of December 2022 represented a 16%-31% inflation of its actual estimated internal user counts," Hindenburg said in a note published on its website. After taking a short position in Block, Hindenburg alleged in the report that the payments firm overstated its Cash App user numbers and understated its customer acquisition costs. Short sellers typically sell borrowed securities and aim to buy these back at a lower price.

☆ Block says Cash App has 44 mln verified monthly users after Hindenburg report
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

March 30 (Reuters) - Block Inc (SQ.N) said on Thursday 44 million of its more 51 million monthly active customers on Cash App were verified through its identity program as of Dec. 31. The payments firm also estimated that the verified accounts constituted roughly 97% of Cash App inflows. After taking a short position in Block, the report alleged that the payments firm led by Twitter co-founder Jack Dorsey overstated its Cash App user numbers and understated its customer acquisition costs. Block has denied the allegations, saying it would explore legal action against the short seller for its "factually inaccurate and misleading report" that was "designed to deceive and confuse investors". Reporting by Manya Saini in Bengaluru; Editing by Pooja Desai and Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Apple launches buy now, pay later service in U.S.
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +2 min

The service, Apple Pay Later, will allow users to split purchases into four payments spread over six weeks with no interest or fees, the company said. "Apple Pay Later will absolutely wallop some of the other players. Hewson added that Apple Pay Later will be a disruptor as consumers are looking for the easiest way to get what they want, as their wallets have been stretched by inflation. BNPL firm Affirm Holdings Inc's (AFRM.O) shares fell more than 7%, while PayPal was down about 1.5% in midday trading. Apple Pay Later is enabled through the Mastercard Installments program, the company said, adding that Goldman Sachs (GS.N) was the issuer of the Mastercard payment credential.

☆ Payments firm Block's Australian shares slump after Hindenburg report
▼ + stars: | 2023-03-24 | by ( Navya Mittal | ) www.reuters.com time to read: +2 min

March 24 (Reuters) - Australia-listed shares of Block Inc , led by Twitter co-founder Jack Dorsey, plunged 16.3% on Friday after Hindenburg Research alleged that the payments firm overstated its user numbers and understated its customer acquisition costs. Block, which is currently exploring a legal action against the short-seller, said the report was "factually inaccurate and misleading". Shares of the San Francisco-headquartered company led losses in Australia's benchmark ASX 200 Index (.AXJO) and hit their lowest since January 2023 at A$91.28. Block's $29 billion buyout of the Australian buy-now-pay-later firm Afterpay "was designed in a way that avoided responsible lending rules in its native Australia," the U.S. short-seller said in its report. ASX-listed Block shares plunge post Hindenburg's reportReporting by Navya Mittal in Bengaluru; Editing by Devika Syamnath and Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ Block shares extend losses as Hindenburg report weighs
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Cash App is seen at the main hall during the Bitcoin Conference 2022 in Miami Beach, Florida, U.S. April 6, 2022. REUTERS/Marco Bello/File PhotoMarch 24 (Reuters) - Shares of Twitter co-founder Jack Dorsey's Block Inc (SQ.N) fell 4% in premarket trading on Friday, a day after the payments firm's Cash App business became the latest target of U.S. short seller Hindenburg Research. In a report, Hindenburg has alleged that Block overstated its user numbers and understated its customer acquisition costs. Block shares closed 15% lower on Thursday, giving up all the gains made so far this year. The report cited a non-profit organization to say that Cash App was also "by far" the top app used in reported U.S. sex trafficking.

Shares of major U.S. banks JPMorgan Chase & Co (JPM.N), Wells Fargo (WFC.N) and Bank of America (BAC.N) dropped more than 2% in premarket trade. Shares of regional lenders First Republic Bank (FRC.N), PacWest Bancorp (PACW.O), Western Alliance Bancorp (WAL.N) and Truist Financial Corp (TFC.N) fell between 2.1% and 2.8%. European banks also came under pressure, with a report of a U.S. probe on Credit Suisse and UBS (UBS.N) further souring the mood. ET, Dow e-minis were down 304 points, or 0.94%, S&P 500 e-minis were down 31.5 points, or 0.79%, and Nasdaq 100 e-minis were down 59 points, or 0.46%. Reporting by Amruta Khandekar and Ankika Biswas; Editing by Sriraj Kalluvila and Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Wall St ends higher as Yellen vows actions to safeguard deposits
▼ + stars: | 2023-03-23 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

"The market as a whole is telling you is there are a lot of different ways to interpret all the things people are saying." Interest rate hikes by central banks around the world have stressed the banking sector, which became manifest with the recent failures of SVB Financial Group (SIVB.O) and Signature Bank (SBNY.O). Comments from the Bank of England that inflation will probably quickly fade also helped fuel hopes of light at the end of the central bank tightening tunnel. "Every central bank that was on path to raise rates raised them," GLOBALT's Martin added. Shares of First Republic Bank (FRC.N) dropped in volatile trading in the wake of Yellen's testimony.

☆ Wall Street rallies on hopes of Fed policy pause
▼ + stars: | 2023-03-23 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

"Today the market is bouncing back on what was a dovish Fed hike yesterday," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "Powell did a good job sticking to the party line on inflation and continued to jawbone hawkish even though the hike leaned dovish." Comments from the Bank of England that inflation will probably quickly fade also helped fuel hopes of light at the end of the central bank tightening tunnel. Among the 11 sectors of the S&P 500, communication services (.SPLRCL) and tech (.SPLRCT) led the percentage gainers. The S&P 500 posted four new 52-week highs and 14 new lows; the Nasdaq Composite recorded 45 new highs and 197 new lows.

☆ Hindenburg takes aim at Dorsey's payments firm Block, shares plunge
▼ + stars: | 2023-03-23 | by ( Manya Saini | ) www.reuters.com time to read: +5 min

Block shares fell as much as 22% before paring losses and were last down 14% at $62.61 in afternoon trading. After reviewing the full report, Block said it was "designed to deceive and confuse investors". Hindenburg said that Block "obfuscates" how many individuals are on the Cash App platform by reporting misleading "transacting active" metrics filled with fake and duplicate accounts. The app had 51 million monthly transacting actives, a 16% year-over-year increase during December 2022, Block said in fourth-quarter earnings letter. "What I am really concerned about is the Cash App, accusations of fraud, multiple accounts, opening accounts and fake names.

☆ Short Seller Hindenburg Says Jack Dorsey’s Payments Company Inflates User Numbers
▼ + stars: | 2023-03-23 | by ( Peter Rudegeair | ) www.wsj.com time to read: 1 min

Hindenburg said Jack Dorsey, Block Inc.’s chief and co-founder, has amassed a $5 billion personal fortune by taking advantage of Cash App’s users. Shares of the payments company formerly known as Square fell more than 20% in early trading Thursday after a short seller questioned the company’s user numbers and accused it of predatory tactics. Hindenburg Research said a two-year investigation into Block Inc. found the company “obfuscates” its Cash App service’s true user numbers by reporting misleading metrics “filled with fake and duplicate accounts.” It also accused the company of taking advantage of the demographics it claims to serve—lower-income people and minorities—with “predatory loans and fees.”

Traders' bets are almost equally split between the Fed pausing its rate hikes in May and another 25 bps hike, according to CME Group's Fedwatch tool. Communication services (.SPLRCL) and information technology (.SPLRCT) led the gains among the S&P 500 sector indexes, all of which rose, except utilities (.SPLRCU). Bank of America (BAC.N) and UBS (UBS.N) now see the Fed funds rate target peaking at 5-5.25% in May compared to earlier forecasts of 5.25-5.5%. Advancing issues outnumbered decliners by a 3.62-to-1 ratio on the NYSE and 3.27-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and five new lows, while the Nasdaq recorded 17 new highs and 27 new lows.

☆ Hindenburg shorts Jack Dorsey's payments firm Block, shares plunge
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Cash App is seen at the main hall during the Bitcoin Conference 2022 in Miami Beach, Florida, U.S. April 6, 2022. REUTERS/Marco BelloMarch 23 (Reuters) - Hindenburg Research on Thursday disclosed short positions in Block Inc (SQ.N) and alleged that the Jack Dorsey-led payments firm overstated its user numbers and understated its customer acquisition costs. Shares of Block slid 20% to $57.85 in premarket trading following the report. Hindenburg added that Block "obfuscates" how many individuals are on the Cash App platform by reporting misleading "transacting active" metrics filled with fake and duplicate accounts. Founded in 2017 by Nathan Anderson, Hindenburg is a forensic financial research firm that analyses equity, credit and derivatives.

☆ Shares of Jack Dorsey’s Block Fall on Short-Seller Report
▼ + stars: | 2023-03-23 | by ( Peter Rudegeair | ) www.wsj.com time to read: 1 min

Hindenburg said Jack Dorsey, Block Inc.’s chief and co-founder, has amassed a $5 billion personal fortune by taking advantage of Cash App’s users. Shares of the payments company formerly known as Square fell 13% in early trading Thursday after a short seller questioned the company’s user numbers and accused it of predatory tactics. Hindenburg Research said a two-year investigation into Block Inc. found the company “obfuscates” its Cash App service’s true user numbers by reporting misleading metrics “filled with fake and duplicate accounts.” It also accused the company of taking advantage of the demographics it claims to serve—lower-income people and minorities—with “predatory loans and fees.”

Approximately 0.5% of Etsy's active sellers -or around 2,700 merchants- had their payments delayed on Friday related to SVB's collapse, according to Etsy. The payments Etsy sellers received is unrelated to the Federal Reserve's Sunday announcement, which ensured that SVB's customers would have access to their funds on Monday. Shopify has temporarily paused payments to its merchants who receive payments to SVB accounts. These online sellers must update their bank accounts that have no connections with SVB to resume getting payments. Switching bank accounts can pose a problem for sellers whose sole business account was with SVB.

☆ Fintech firms may struggle to find investor love in rebounding U.S. IPO market
▼ + stars: | 2023-03-08 | by ( Manya Saini | ) www.reuters.com time to read: +4 min

REUTERS/Dado Ruvic/IllustrationMarch 8 (Reuters) - The once high-flying fintech startups looking to go public will have a hard time attracting investor attention, even though a freeze that has gripped the market for new listings is starting to thaw. "I don't think it would surprise anyone if they all sat out the 2023 IPO market," Kennedy added. In the IPO boom of 2021, 20 fintech companies raised a combined $10.93 billion, vastly overshadowing the $144 million that was raised by a lone offering in the following year, according to data from Dealogic. "The IPO market is not closed, but it's certainly more valuation and profitability focused," said David Ethridge, U.S. co-IPO leader at global consulting giant PwC. Reuters GraphicsLACKLUSTRE LISTINGSListed fintech companies have failed to largely live up to their shareholders' expectations as they have steadily booked losses, leading to a string of routs in their shares.

Brands will account for 70% of that spend, with most of the rest coming from so-called collectives, alumni groups that funnel money to athletes, according to Opendorse. Female athletes and meme starsGiven the wide-open field, brands’ strategies with NIL deals vary widely. Jill Cress, chief marketing and experience officer of H&R Block in a 2018 picture. Favorability ratings from both Gen Z consumers and parents of college students rose after the campaign, according to Ms. Cress. Bigger deals aheadNIL deals will likely evolve to often include intellectual property agreements with the schools in question, said Mr. Schwab.

The personal consumption expenditures (PCE) price index, the Fed's preferred gauge of inflation, shot up 0.6% last month after gaining 0.2% in December. In the 12 months through January, the PCE index accelerated 5.4% after rising 5.3% in December. "This PCE number, which to me is a vital number, clearly suggests that the Fed has more to do. ET, Dow e-minis were down 352 points, or 1.06%, S&P 500 e-minis were down 48.25 points, or 1.2%, and Nasdaq 100 e-minis were down 202.5 points, or 1.66%. A string of Fed policymakers including Cleveland Fed President Loretta Mester and Boston Fed President Susan Collins are also slated to speak.

☆ Dorsey-led Block's revenue rises as consumers shrug off inflationary pressures
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

Shares of Block, formerly called Square, reversed course to rise 3% in volatile extended trading after results. Consumers were largely resilient to inflationary pressures throughout 2022, helping sustain the company's mainstay online payments service, known as CashApp. For the full-year Block's bitcoin revenue fell nearly 29% to $7.11 billion, as prices of the cryptocurrency retreated amid heavy market volatility triggered by a risk off sentiment and a slew of big name collapses. The company reported net revenue of $4.65 billion in the three months ended Dec. 31, compared with $4.08 billion a year earlier. Reporting by Manya Saini in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ PayPal tells Australia it supports buy-now-pay-later regulation
▼ + stars: | 2023-02-16 | by ( Byron Kaye | ) www.reuters.com time to read: +3 min

SYDNEY, Feb 16 (Reuters) - Payments giant PayPal Holdings Inc (PYPL.O) wants buy-now-pay-later (BNPL) loans subjected to consumer protection law, it said in a submission to the Australian government, adding a powerful voice from inside the sector calling for regulation. Many other companies which sell BNPL loans said in submissions that they supported minimal or self-regulation. BNPL companies attract shoppers by charging no interest and make money from retailer fees. The company saw "merit in further consideration of the development of a bespoke BNPL credit reporting framework" without the full "costs typically associated with engaging in the credit reporting regime". The government has said it wants BNPL regulation in place in 2023.

☆ More Companies Are Hiring CMOs With Performance-Marketing Backgrounds
▼ + stars: | 2023-01-17 | by ( Patrick Coffee | Destination Xl Ceo Harvey Kanter | ) www.wsj.com time to read: +6 min

Companies looking to hire CMOs and other top-level marketing executives amid an economic downturn are increasingly favoring candidates with deep experience in so-called performance-marketing. Performance-marketing campaigns push consumers to take a specific action, such as clicking a link or providing an email address, while brand marketing aims to increase awareness of a company and shape perceptions of that business. The trend will create a challenging job market for senior executives whose careers have centered on more traditional, brand-based marketing. “If we are awesome at performance marketing and don’t understand what it means to engage a consumer—in reality that means brand-level marketing as well—we will lose,” Mr. Kanter said. PREVIEWIndustry leaders frequently debate whether brand and performance marketing should be separate disciplines run by different people.

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