|Bid||218.68 x 1000|
|Ask||218.73 x 1000|
|Day's range||217.01 - 219.02|
|52-week range||151.70 - 224.77|
|Beta (3Y monthly)||1.36|
|PE ratio (TTM)||9.77|
|Earnings date||14 Jan 2020 - 20 Jan 2020|
|Forward dividend & yield||5.00 (2.27%)|
|1y target est||236.62|
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.France added to the growing chorus of lawmakers and executives seeing consolidation as an avenue to revive Europe’s ailing banks, ahead of a key meeting that may jumpstart a plan to create a single market for the industry.Prime Minister Edouard Philippe, speaking in an interview in Paris on Tuesday, said mergers to create “critical-size, global actors” in European finance would be a “good thing.” He backed a call by German Finance Minister Olaf Scholz to complete the project for a banking union that would make such deals easier.“Everything that is giving sense to the European Union -- to this exceptional market of 500 million consumers -- in trade, norms and finance, is welcome,” he said in the interview at his office in an upscale neighborhood on Paris’ Left Bank, while declining to discuss the proposal in detail. “At every level, it’s important that Europe takes stock of its power.”Scholz last week signaled Germany may give up its opposition to a key part of the plan for European banking integration as lenders such as Deutsche Bank AG struggle to compete a decade after the financial crisis. But his proposal has yet to be endorsed by the government in Berlin, while a key condition -- stricter rules on banks’ sovereign debt holdings -- has already irked Scholz’s Italian counterpart.The banking union project will be discussed in more detail at a December meeting of European finance ministers, who want to finalize a roadmap so national leaders can start negotiations next year. After seven years during which fiscally conservative northern European countries have been deadlocked with neighbors in the south, progress may be slow.Then there’s the question of who would do the consolidating. France has in the past tried to protect key companies and industries from foreign takeovers. Philippe suggested French banks may be in a strong position to acquire rivals once the regulatory framework is in place.‘I Will Rejoice’“I know some French banks have a reputation of being very innovative and, for some, very competitive,” he said. “If their growth strategy includes alliances, mergers or acquisitions with European or non-European institutions, if these are smart and well-crafted operations, I will rejoice.”While Societe Generale SA has indicated that it would be interested in playing a role in European banking consolidation, the lender is undergoing a radical restructuring to shrink its investment bank. BNP Paribas SA is seen as being in a stronger position to play a role in European consolidation and was two years ago linked with a possible bid for Germany’s Commerzbank AG.France, while backing consolidation in the banking sector, believes its institutions are in a position to be buyers rather than targets, an official in the government said. Consolidation could include foreign stakes in a French bank, but the country’s national champions are solid enough to be the ones buying others, according to the official, who spoke on condition of anonymity.Europe’s banks have fallen behind their Wall Street peers since the global financial crisis in 2008, as stricter regulation and negative interest rates erode profitability. Even U.S. competitors such as Goldman Sachs Group Inc. have said Europe would benefit from a local banking champion.Mustier’s ViewJean Pierre Mustier, the chief executive officer of UniCredit SpA, said in an interview that consolidation in European banking is dependent on higher stock prices because firms need to raise capital for deals. UniCredit was among firms seen as a possible suitors for Commerzbank earlier this year after the German lender’s merger talks with Deutsche Bank broke down.“What needs to happen in Europe for more consolidation is probably for the bank shares to go up, then we might look at it,” Mustier said in a Bloomberg Television interview with Francine Lacqua taped on Tuesday. “One way or another you need to issue capital when you consolidate.”For France, deeper integration of the banking sector is an “absolute priority” and a question of sovereignty so that Europe’s economy doesn’t depend on foreign banks’ willingness to finance it, the French finance ministry said last week in response to the German proposal.President Emmanuel Macron’s premier sees the creation of large European banks as part of a broader call for continental champions. He said the European Commission, the executive branch of the EU, has so far had a “conservative approach” about consolidation to preserve competition within the bloc and protect consumers.‘Critical Size’“It poses a problem, it strips Europe from operators that would have the critical size on global markets,” he said, citing the planned merger of Alstom SA and Siemens AG that was shot down on ground it would create a dominating actor.He reiterated his call to EU Commissioner antitrust chief Margrethe Vestager to revise a “static” position on competition toward a “dynamic” one that would take into account global competition.“It’s in the interest of the EU to see competition rules evolve,” he said. France, he added, would seek to push the EU to reform its policies.(Updates with comments from UniCredit CEO Mustier from 11th paragraph.)\--With assistance from Rosalind Mathieson.To contact the reporters on this story: Helene Fouquet in Paris at email@example.com;Ania Nussbaum in Paris at firstname.lastname@example.org;Geraldine Amiel in Paris at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, ;Dale Crofts at email@example.com, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- The titans of finance have a new foe, and it’s not Jeremy Corbyn or Elizabeth Warren. Wall Street’s elite is attacking Europe’s central banks over their reliance on negative interest rates, saying they’re hurting the economy.Monetary authorities do need to be mindful of the side effects of unconventional measures. But there’s little evidence that negative rates are proving harmful. Indeed, they might be more effective still if bankers passed them onto consumers more.Europe’s central banks have used negative rates since the start of the decade. They charge lenders for the money they park in a central bank’s deposit facility above a certain threshold, in the hope that this will force commercial banks to lend more. In September, the European Central Bank cut its deposit rate further to -0.5% (while introducing some exemptions for banks through a system called “tiering”).Bankers are scathing about the overall policy. Last month James Gorman and Jamie Dimon, the chief executive officers of Morgan Stanley and JPMorgan Chase & Co., delivered a double-whammy: “What Europe is experiencing with negative rates is obviously very bad,” Gorman said, “not just for banks but for the economy.” “God, I hope it never comes here [to the U.S.],” said Dimon. David Solomon, the boss of Goldman Sachs Group Inc., says negative rates are a “failed experiment.”Such protests are obviously self-serving, though they’re understandable too. A negative deposit rate forces banks to take a hit on profits, especially when they decide not to pass these charges onto consumers. This pressures lenders that are already squeezed by the tight spreads between their deposit and their lending rates. However, Dimon and Co. are on shakier ground when they claim to be speaking for the common good.There are three arguments against negative rates. The first is that they encourage irresponsible lending, fueling bubbles and creating the conditions for a financial crash. The second is that they’ll prompt savers to take too much money out of the banking system, to avoid paying for the privilege of depositing cash. The third, associated with the work of Markus Brunnermeier and Yann Koby at Princeton University, is that there’s a “reversal rate” below which a central bank prompts lenders to cut back on their lending instead of increasing it. This boundary creeps up over time, curtailing how long the monetary authorities can keep interest rates low.Fears about financial stability are the most compelling case against negative rates. They’re also the least specific. Other policies — including low rates, asset purchases and generous loans to banks — are vulnerable to the same accusations. Central bankers are having to use these unorthodox measures to try to bring inflation back on target and to stimulate growth, which is their mandate.There will always be a trade off between stimulating an economy and encouraging excessive risk-taking, which supervisors address through other policy levers such as higher capital requirements. Raising rates at this stage would simply lead to a sharp slowdown in the economy, causing a wave of defaults. Hardly a recipe for financial stability.Meanwhile, the risk of people stashing their money under the mattress is difficult to imagine with modestly negative rates. Few banks have passed negative rates on to their customers, generally doing this only to large corporate clients and wealthy savers. It’s possible theoretically that extending this to smaller depositors could prompt a bank run. Yet there are costs to storing and insuring cash.Moreover, we know businesses and consumers are prepared to pay for holding cash in more convenient ways. For example, merchants and users pay fees for using credit cards.Finally, there’s little evidence that negative rates have held back lending. A recent ECB working paper shows deposits with commercial lenders have increased since the central bank introduced negative deposit rates. At the same time, companies with large cash holdings have cut their deposits and invested more. That’s exactly the goal of this policy.In fact, banks that pass on negative rates to customers appear to provide more credit than other lenders. This suggests that, contrary to what those Wall Street titans say, the problem with negative rates is that not enough banks inflict them on their clients.It’s certainly possible that monetary policy becomes less effective as central banks cut interest rates deeper into negative territory. Gauti Eggertsson of Brown University and Larry Summers of Harvard have looked at Sweden, a pioneer in cutting rates below zero. They concluded that while its first two negative moves reduced lending rates, this wasn’t repeated after two later cuts.However, similar diminishing returns are seen in other unorthodox measures, including asset purchases. The authors also acknowledge that the rate cuts might have boosted Sweden’s economy via other channels, for example by depreciating the krona, allowing the government to borrow more and boosting asset prices.So far negative rates have been confined largely to Japan and Europe. For all the enthusiasm of President Donald Trump, Jerome Powell, chairman of the Federal Reserve, doesn’t think the U.S. will be copying the policy. Wall Street should feel safe then. That doesn’t mean it is right.To contact the author of this story: Ferdinando Giugliano at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Ferdinando Giugliano writes columns on European economics for Bloomberg Opinion. He is also an economics columnist for La Repubblica and was a member of the editorial board of the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Argentina’s Ualá, the mobile payments app backed by heavyweight investors George Soros and Steve Cohen, is offering its users the possibility of investing in a low-risk mutual fund through the app.The option to invest cash stored in the electronic wallet into a money-market mutual fund in pesos comes as part of a partnership with local broker SBS Asset Management SA, said Ualá founder and Chief Executive Officer Pierpaolo Barbieri. Users will have the option of investing as little as one peso -- two cents on the dollar -- into a fund that invests in time deposits and remunerated accounts.The move comes as Argentines seek to maintain the value of their savings amid capital controls and 50% annual inflation. The government tightened capital controls after opposition leader Alberto Fernandez won the presidential election in Oct. 27, restricting dollar purchases by savers to just $200 per month compared with $10,000 per month previously. Argentines tend to flock to greenbacks amid volatility, a response to several financial crises and a currency that has only weakened over time.“When there’s capital controls, you need to give people a way to preserve the value of their pesos,” said Barbieri in a phone interview from Buenos Aires. “Our aim with this fund is to give savers a good cash management tool, to allow them a daily income from the day of their payslip until they need to spend it on products and services.”The fund invests in conservative instruments including time deposits and avoids risky bonds.Ualá has issued 1.3 million prepaid cards since it started operating in October 2017, as part of a bet on long-term growth in a country in which less than half of the population has a bank account. In addition to early-backers Soros and Cohen, Goldman Sachs Group Inc. and Chinese internet giant Tencent Holdings Ltd have also announced investments in the company. Ualá started offering its users loans in the middle of the year.The fund, SBS Ahorro Pesos FCI, allows for same-day redemptions and is managed by SBS Head Portfolio Manager Cristian Brau. The fund’s management fee is 2% in pesos with no spread over performance.“We’re constantly making an effort to boost people’s access to the capital markets,” said Leandro Trigo, chief executive officer of Grupo SBS. The broker is also providing Ualá access to a platform that allows for “robust, safe” investing, he added. The company opened more than 52,000 accounts exceeding 32 million pesos in a beta stage launched to some clients in early October. Ualá, which has 175 employees, expects to expand to 200 by year-end.“This is a product with zero chances of default,” Barbieri said. “We want to convince people that every day their pesos sleep in a savings account, they lose money. The fund will allow them real positive rates at a time where they can’t freely buy dollars.”(Updates to add quote from SBS CEO in eighth paragraph.)To contact the reporters on this story: Jorgelina do Rosario in Buenos Aires at firstname.lastname@example.org;Carolina Millan in Buenos Aires at email@example.comTo contact the editors responsible for this story: Daniel Cancel at firstname.lastname@example.org, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Apple Inc. pitches its new card as a model of simplicity and transparency, upending everything consumers think about credit cards.But for the card’s overseers at Goldman Sachs Group Inc., it’s creating the same headaches that have bedeviled an industry the companies had hoped to disrupt.Social media postings in recent days by a tech entrepreneur and Apple co-founder Steve Wozniak complaining about unequal treatment of their wives ignited a firestorm that’s engulfed the two giants of Silicon Valley and Wall Street, casting a pall over what the companies had claimed was the most successful launch of a credit card ever.Goldman has said it’s done nothing wrong. There’s been no evidence that the bank, which decides who gets an Apple Card and how much they can borrow, intentionally discriminated against women. But that may be the point, according to critics. The complex models that guide its lending decisions may inadvertently produce results that disadvantage certain groups.The problem -- in Washington it’s referred to as “disparate impact” -- is one the financial industry has spent years trying to address. The increasing use of algorithms in lending decisions has sharpened the years-long debate, as consumer advocates, armed with what they claim is supporting research, are pushing regulators and companies to rethink whether models are only entrenching discrimination that algorithm-driven lending is meant to stamp out.“Because machines can treat similarly-situated people and objects differently, research is starting to reveal some troubling examples in which the reality of algorithmic decision-making falls short of our expectations, or is simply wrong,” Nicol Turner Lee, a fellow at the Center for Technology Innovation at the Brookings Institution, recently told Congress.Wozniak and David Heinemeier Hansson said on Twitter that their wives were given significantly lower limits on their Apple Cards, despite sharing finances and filing joint tax returns. Wozniak said he and his wife report the same income and have a joint bank account, which should mean that lenders view them as equals.One reason Goldman has become a poster child for the issue is that the Apple Card, unlike much of the industry, doesn’t let households share accounts. That could lead to family members getting significantly different credit limits. Goldman says it’s considering offering the option.The bank said in a tweet it would also re-evaluate credit decisions if the borrowing limit is lower than the customer expected.“We have not and never will make decisions based on factors like gender,” the company said. “In fact, we do not know your gender or marital status during the Apple Card application process.”With this month’s snafu, Goldman has found itself in the middle of one of the thorniest laws in finance: the Equal Credit Opportunity Act. The 1974 law prohibits lenders from considering sex or marital status and was later expanded to prohibit discrimination based on other factors including race, color, religion, national origin and whether a borrower receives public assistance.The issue gained national prominence in the 1970s when Jorie Lueloff Friedman, a prominent Chicago television anchor, began reporting on her own experience with losing access to some of her credit card accounts at local retailers after she married her husband, who was unemployed at the time. She ultimately testified before Congress, saying “in the eyes of a credit department, it seems, women cease to exist and become non-persons when they get married.”FTC WarningA 2016 study by credit reporting agency Experian found that women had higher credit scores, less debt, and a lower rate of late mortgage payments than men. Still, the Federal Trade Commission has warned that women may continue to face difficulties in getting credit.Freddy Kelly, chief executive officer of Credit Kudos, a London-based credit scoring startup, pointed to the gender pay gap, where women are typically paid less than men for performing the same job, as one reason lenders may be stingy with how much they let women borrow.Using complex algorithms that take into account hundreds of variables should lead to more just outcomes than relying on error-prone loan officers who may harbor biases against certain groups, proponents say.“It’s hard for humans to manually identify these characteristics that would make someone more creditworthy,” said Paul Gu, co-founder of Upstart Network Inc., a tech firm that uses artificial intelligence to help banks make loans.Upstart uses borrowers’ educational backgrounds to make lending decisions, which could run afoul of federal law. In 2017, the Consumer Financial Protection Bureau told the company it wouldn’t be penalized as part of an ongoing push to understand how lenders use non-traditional data for credit decisions.AI PushConsumer advocates reckon that outsourcing decision-making to computers could ultimately result in unfair lending practices, according to a June memorandum prepared by Democratic congressional aides working for the House Financial Services Committee. The memo cited studies that suggest algorithmic underwriting can result in discrimination, such as one that found black and Latino borrowers were charged more for home mortgages.Linda Lacewell, the superintendent of the New York Department of Financial Services, which launched an investigation into Goldman’s credit card practices, described algorithms in a Bloomberg Television interview as a “black box.” Wozniak and Hansson said they struggled to get someone on the phone to explain the decision.“Algorithms are not only nonpublic, they are actually treated as proprietary trade secrets by many companies,” Rohit Chopra, an FTC commissioner, said last month. “To make matters worse, machine learning means that algorithms can evolve in real time with no paper trail on the data, inputs, or equations used to develop a prediction.“Victims of discriminatory algorithms seldom if ever know they have been victimized,” Chopra said.(Updates with Goldman comments in ninth and 10th paragraphs.)To contact the reporters on this story: Shahien Nasiripour in New York at email@example.com;Jenny Surane in New York at firstname.lastname@example.org;Sridhar Natarajan in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Goldman Sachs Group Inc. is leaning away from a target of finding $5 billion in extra revenue by next year, people briefed on the matter said.The Wall Street bank will tout a wider range of financial metrics at an investor day in January, said the people, who asked not to be identified speaking before the event. Executives have already been pushing investors to judge the bank on other measures including its expense ratio.The $5 billion target was set in 2017 as the Wall Street firm looked to expand a range of businesses separate from its traditional strengths in trading. The bank has been boosting its consumer lending operations and this year partnered with Apple Inc. on a new credit card.In a presentation in September 2017, Goldman Sachs outlined a series of measures it described as “opportunities for growth” that included making an extra $1 billion from investment management and more than $2 billion from firm-wide lending and financing initiatives over the coming three years.Goldman Sachs produced $32.4 billion in revenue in 2017. Through the 12 months ended in September, it’s generated $34.7 billion, a jump of $2.3 billion.Chief Executive Officer David Solomon inherited the target from his predecessor Lloyd Blankfein after taking over as CEO in October 2018. Solomon beat out co-president Harvey Schwartz for the top job, and Schwartz left the firm last year. Schwartz was the one who presented the revenue target in 2017.A Goldman Sachs spokesman declined to comment. Reuters reported the plans earlier Monday.\--With assistance from Stefania Spezzati and Sridhar Natarajan.To contact the reporters on this story: Harry Wilson in London at email@example.com;Donal Griffin in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Michael J. Moore, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Hyped as the biggest credit-card innovation in 50 years, the Apple Card is starting to look more like something from the 1960s and 1970s: Women are allegedly being granted a fraction of their spouses’ borrowing limits. It’s another troubling example of the deficiencies of machine learning.Just months after its launch, New York regulators say they’re investigating Goldman Sachs Group Inc., the bank behind the card, and the algorithm that it uses to determine credit-worthiness. Goldman denies any discrimination but that hasn’t stopped Apple Inc.’s co-founder Steve Wozniak from calling for the U.S. government to get involved. “We don’t have transparency on how these companies set these things up and operate,” he told Bloomberg News.The investigation and Wozniak’s comments came in response to a Twitter broadside from the tech entrepreneur David Heinemeier Hansson, in which he said the Apple Card gave him a credit limit 20 times bigger than the one for his wife. This was despite her superior credit score and their jointly filed tax returns. Wozniak says he has been given 10 times the limit granted to his wife.The bone of contention here is what Apple’s customer services representatives called, in Hansson’s telling, “the algorithm.” When he sought an explanation of why his wife was being treated differently, he was told the algorithm was accountable.How the Algorithms Running Your Life Are Biased: QuickTakeYet blaming the algorithm — while saying an exception would be made for Hansson’s wife and her credit assessment adjusted, as Apple did — seems a tacit admission that said algorithm is flawed. At the very least, it raises questions about just how “accountable” these systems are. Customers don’t know the details of how the Apple-Goldman credit-worthiness computations work, how dependent they are on artificial intelligence (or, more precisely, machine learning), what inputs they use, or even how much of the technology is proprietary to the two companies.If the system is indeed making such blatantly egregious decisions, should it really be used at all? At least when there’s human error or bias there’s a more straightforward route to correct it. While a company can interrogate a person about how they arrived at an individual decision, that’s usually not possible with machine learning. Instead you have to examine the “big data” inputs that informed the algorithm, and see if that prompted a set of biases.Of course, bias in artificial intelligence is not unique to the Apple Card. It has reared its head in the criminal justice system, the employment market, health care, facial recognition, app recommendations and beyond. In each case, understanding what prompted the prejudices is essential to fixing it. And in each case, that’s easier said than done. John Giannandrea, Apple's head of AI, said in 2017 that data bias is the greatest danger posed by machine learning.This isn’t the first consumer finance misstep for Goldman. The Wall Street firm may be at the cutting edge of finance, but its foray into consumer lending has been mired in rookie mistakes. Its consumer lending arm, Marcus, reportedly started without a team of debt collectors, leading to early losses on delinquent borrowers.Apple’s chief executive officer Tim Cook, meanwhile, has hinted that he’s seeking a partner to bring the Apple Card to Europe. The Hansson and Wozniak episodes show that would be quite a gamble. The European Union’s General Data Protection Regulation, introduced last year, includes the “right to explanation” for consumers – exactly the thing being demanded by Hansson. A failure to provide a satisfactory reason might result in financial penalties. As we can see, with AI algorithms such explanations aren’t easily extracted.To contact the authors of this story: Alex Webb at firstname.lastname@example.orgElisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Want to receive this post in your inbox every morning? Sign up hereHong Kong violence escalates, Aramco predicts peak oil demand, and political fault lines exposed. Here are some of the things people in markets are talking about today.Clashes Hong Kong has seen one of its most violent days since June, with clashes between demonstrators and police intensifying after an officer shot a protester during an early morning scuffle. Video emerged of a man doused with petrol and set on fire, with both victims in intensive care. Banks sent employees home early after police fired tear gas in the financial district, and the Hang Seng Index dropped 2.6% -- the most since early August. Hong Kong leader Carrie Lam called for calm, saying violence would not achieve the protesters’ goals.Peak oil (demand) Saudi Aramco’s prospectus provided a detailed IPO timetable for the world’s most profitable company, with investors allowed to start bidding for shares from Nov. 17 and a final price set for Dec. 5. Of more interest to the oil market might be the assessment included in the prospectus that global oil demand may peak within the next 20 years, a suggestion which had long been dismissed by Saudi officials. Other risk factors cited include political unrest, government policy, climate change concerns and FX risk. In what we are *sure* is just coincidental timing, Iran announced the discovery of a mammoth 53 billion barrel oil field over the weekend. PoliticsSpain’s election over the weekend failed to do anything to break the political deadlock in the country. Prime Minister Pedro Sanchez’s Socialist Party lost some ground while one of his coalition partners was obliterated as the nationalist Vox party emerged as a big winner from the poll. Bolivian President Evo Morales resigned after weeks of protests following the Oct. 20 election led to an intervention from the country’s armed forces over the weekend. There was some good news for British Prime Minister Boris Johnson on the campaign trail as data showed the U.K. avoided falling into recession in the third quarter. In the U.S. the back and forth over the impeachment inquiry continues apace. Markets slipProtests in Hong Kong are weighing on markets which were already showing some nerves about progress on a U.S.-China trade deal. Overnight the MSCI Asia Pacific Index slipped 0.7% while Japan’s Topix index eked out a 0.1% gain despite a strengthening yen. In Europe the Stoxx 600 Index was 0.4% lower at 5:40 a.m. Eastern Time. S&P 500 futures pointed to a drop at the open, U.S. Treasury trading is closed for Veteran’s Day, and gold was recovering some of its recent losses. Good day, bad dayAlibaba Group Holding Ltd. has logged more than 215 billion yuan ($30.7 billion) of purchases during the Singles’ Day event, exceeding last year’s record about two-thirds into the 24-hour shopping marathon. Things are not going so well for Goldman Sachs Group Inc.’s new Apple Card after Apple co-founder Steve Wozniak added his voice to criticisms of potential discrimination by the lender on gender grounds. A Wall Street regulator has already opened a probe into the bank’s practices after David Heinemeier Hansson railed against the Apple Card for giving him 20 times the credit limit that his wife got.What we've been readingThis is what's caught our eye over the weekend.Odd Lots: This is why repo markets went crazy and why December could be even worse. A $100 billion fund manager is debunking stock-bubble theories. China’s October credit slump shows PBOC policy struggling. JPMorgan’s Dimon laments income inequality, won’t assail CEO pay. Unlike the S&P 500, Europe’s stock rally has many stars. Germany plans incentives to boost hydrogen in energy mix. Taking strides towards entirely renewable energy. To contact the author of this story: Lorcan Roche Kelly in Dublin at email@example.comTo contact the editor responsible for this story: Sid Verma at firstname.lastname@example.org, Cecile GutscherFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Goldman Sachs Group Inc.’s co-head for India business, Vijay Karnani, is retiring from the bank after 21 years with the company, according to a memo seen by Bloomberg News.Karnani joined Goldman Sachs in 1998 as an associate in equity capital markets and moved to the equity derivatives team in Hong Kong in 2000, the memo shows. He became head of the bank’s securities business in India in 2009 and co-chief executive officer two years later. A spokesman for the New York-based bank confirmed the content of the memo and said that Karnani will be retiring at the end of 2019.Sonjoy Chatterjee, chairman and co-chief executive of Goldman Sachs in India, will become the sole head of the business in the country, the bank’s spokesman said.(Updates to add in the second paragraph that Karnani will be retiring in end 2019.)To contact the reporters on this story: Baiju Kalesh in Mumbai at email@example.com;Anto Antony in Mumbai at firstname.lastname@example.orgTo contact the editors responsible for this story: Fion Li at email@example.com, Anto AntonyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Investor confidence in Europe’s e-scooter sharing companies is showing little sign of slowing down. Sweden’s Voi Technology AB has announced it’s closed $85 million in new funding.It follows news in October that Berlin-based Tier Mobility had closed a $60 million financing round, led in part by one of the sovereign wealth vehicles behind SoftBank Group Corp.’s gargantuan Vision Fund.“We’ve started to see profit in some cities, and we will use this new money to achieve profitability worldwide as a company by 2021 or 2022,” Voi Chief Executive Officer Fredrik Hjelm said in an interview ahead of the funding announcement.Voi’s cash infusion comes before a particularly critical time for scooter companies: winter. As the weather turns colder, and streets become slick with snow and rain, scooters are a far less appealing mode of transit, battering startups’ margins. U.S. micromobility giant Bird also announced in October it had raised $275 million in fresh capital ahead of the colder months.Demand for e-scooters in cities worldwide has helped the industry’s biggest players achieve multibillion-dollar valuations in less than two years. The popularity of the North American front-runners, such as Bird, fueled by the projected value of being a future market leader, caused a surge of new competitors to spring up across Europe over the past 18 months.Are Electric Scooters the Future of Urban Transport?: QuickTakeMarket consolidation on the continent has been anticipated, but so far remains illusive. Bloomberg News reported in February that Tier and Voi had held early-stage talks about a possible merger in order to remain competitive, but both stayed independent and sought fresh funding instead. Voi’s financing was led by Vostok New Ventures, and included participation from a range of existing investors including Balderton Capital. The scooter startup’s previous raise, of $30 million, was announced in March. The company said in a statement it was now operating in 38 cities across 10 European countries. Per Brilioth, CEO of Vostok, singled out Germany in particular as a “huge market to go for.” Goldman Sachs was an adviser to Voi for the latest round of funding.(Updates with Vostok comment in penultimate paragraph)\--With assistance from Candy Cheng.To contact the author of this story: Nate Lanxon in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew G Miller at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - U.S. futures slumped on Monday, as worsening unrest in Hong Kong caused market jitters and hopes for trade detente between the U.S. and China receded.
(Bloomberg) -- Apple Inc. and Goldman Sachs Group Inc., two of the most recognizable companies in tech and finance, are caught up in a growing debate over whether lenders unintentionally discriminate when they use complex models to determine how Americans borrow money.On Saturday, Bloomberg reported that a Wall Street regulator had opened a probe into Goldman’s credit card practices after a viral tweet from a tech entrepreneur alleged that the Apple Card’s algorithms discriminated against his wife.Now another high-profile user of the Apple Card -- Apple co-founder Steve Wozniak -- is calling for the government to get involved, citing excessive corporate reliance on mysterious technology.“These sorts of unfairnesses bother me and go against the principle of truth. We don’t have transparency on how these companies set these things up and operate,” Wozniak said in an interview on Sunday. “Our government isn’t strong enough on the issues of regulation. Consumers can only be represented by the government because the big corporations only represent themselves.”Wozniak said he can borrow 10 times as much as his wife on their Apple Cards even though they share bank and other credit card accounts, and that other lenders treat them equally.“Algos obviously have flaws,” Wozniak said. “A huge number of people would say, ‘We love our technology but we are no longer in control.’ I think that’s the case.”Lenders have promoted the models because they’re supposed to level the playing field among different borrowers by removing human error and focusing only on data.Apple Card only offers individual accounts and it is possible for two family members to receive significantly different credit decisions, a Goldman spokesman said. “In all cases, we have not and will not make decisions based on factors like gender,” he said.The investigation was launched in response to a series of Twitter posts from David Heinemeier Hansson that railed against the Apple Card for giving him 20 times the credit limit that his wife got. The tweets, many of which contain profanity, immediately gained traction online -- and a response on Twitter from Wozniak.Hansson didn’t disclose any specific income-related information for the couple but said they filed joint tax returns and that his wife has a better credit score than he does. Wozniak said he and his wife also file joint returns and share credit card and bank accounts.“The department will be conducting an investigation to determine whether New York law was violated and ensure all consumers are treated equally regardless of sex,” said a spokesman for Linda Lacewell, the superintendent of the NY DFS. “Any algorithm that intentionally or not results in discriminatory treatment of women or any other protected class of people violates New York law.”It’s the second such action in recent weeks from the regulator, which opened a probe against health-care giant UnitedHealth Group Inc. after a study found an algorithm favored white patients over black patients.“New technologies cannot leave certain consumers behind or entrench discrimination,” Lacewell said in a statement on Sunday. She also solicited complaints from aggrieved consumers on Twitter.Traditional lenders are increasing their use of machines to decide who gets how much credit as part of a strategy to reduce costs and boost loan applications. Meanwhile, technology companies are moving in on the financial services industry’s turf, with businesses such as Amazon, Apple, Facebook and Google threatening banks’ lucrative business lines by offering loans and payment options.Congressional ScrutinyThe algorithms have drawn scrutiny in Congress. In June, the House Financial Services Committee heard about examples of algorithmic decision-making where researchers have found instances of bias targeting specific groups even when there was no intent to discriminate.Some lawmakers already are demanding a federal response. Senator Elizabeth Warren, a Massachusetts Democrat and contender to challenge President Donald Trump in the 2020 election, told federal regulators in June that the government “will have to take action to ensure that anti-discrimination laws keep up with innovation.”For Goldman, its growing ambitions for Main Street are bringing increased scrutiny and a new set of challenges it hasn’t faced previously. The Apple Card is a joint venture between Apple and the New York-based bank, which is responsible for all the credit decisions on the card. It was rolled out earlier this year -- the tech giant markets it as “created by Apple, not a bank” -- and executives at both firms hailed it as the most successful launch ever.Hansson said Goldman isn’t treating inadvertent bias seriously.“As soon as this became a PR issue, they immediately bumped up her credit limit without asking for any additional documentation,” he said of his wife in an interview Saturday. “My belief isn’t there was some nefarious person wanting to discriminate. But that doesn’t matter. How do you know there isn’t an issue with the machine-learning algo when no one can explain how this decision was made?”To contact the reporters on this story: Shahien Nasiripour in New York at firstname.lastname@example.org;Sridhar Natarajan in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Josh Friedman, Matthew G. MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- A Wall Street regulator is opening a probe into Goldman Sachs Group Inc.’s credit card practices after a viral tweet from a tech entrepreneur alleged gender discrimination in the new Apple Card’s algorithms when determining credit limits.A series of posts from David Heinemeier Hansson starting Thursday railed against the Apple Card for giving him 20 times the credit limit that his wife got. The tweets, many of which contain profanity, immediately gained traction online, even attracting comment from Apple co-founder Steve Wozniak.Hansson didn’t disclose any specific income-related information for either of them but said they filed joint tax returns and that his wife has a better credit score than he does.“The department will be conducting an investigation to determine whether New York law was violated and ensure all consumers are treated equally regardless of sex,” said a spokesman for Linda Lacewell, the superintendent of the New York Department of Financial Services. “Any algorithm, that intentionally or not results in discriminatory treatment of women or any other protected class of people violates New York law.”Apple Card only offers individual accounts and it is possible for two family members to receive significantly different credit decisions, a Goldman spokesman said. “In all cases, we have not and will not make decisions based on factors like gender,” he said.Hansson said Goldman’s response doesn’t explain what happened after he started airing his issues on social media.“As soon as this became a PR issue, they immediately bumped up her credit limit without asking for any additional documentation,” he said in an interview. “My belief isn’t there was some nefarious person wanting to discriminate. But that doesn’t matter. How do you know there isn’t an issue with the machine-learning algo when no one can explain how this decision was made?”This is the second such action from the regulator in recent weeks. NY DFS opened a probe against health care giant UnitedHealth Group Inc. after a study found an algorithm favored white patients over black patients.Goldman’s growing ambitions for main street is bringing increased scrutiny and a new set of challenges it hasn’t faced previously. The Apple Card is a joint venture between Apple Inc. and the New York-based bank, which is responsible for all the credit decisions on the card. The card was rolled out earlier this year and executives at both firms hailed it as the most successful launch ever.Traditional lenders are upping their use of machines to decide who gets how much credit as part of a strategy to reduce costs and boost loan applications. Meanwhile, technology companies are moving in on the financial services industry’s turf, with businesses such as Amazon, Apple, Facebook and Google offering loans and payment options.Black-Box AlgorithmsHansson said his posts had led to an internal review and that he was hopeful it would spark a conversation about black-box algorithms and the inherent biases in those systems.The 40-year-old Dane is known for being the creator of the popular programming tool Ruby on Rails. He’s a partner at Basecamp, a web-based software development firm, and also known to regularly take part in automobile endurance races, including the 24 hours of Le Mans in France.“Goldman and Apple are delegating credit assessment to a black box,” Hansson said. “It’s not a gender-discrimination intent but it is a gender-discrimination outcome.”The use of algorithms by lenders in credit decisions has drawn scrutiny in Congress. In June, the House Financial Services Committee heard about examples of algorithmic decision-making where researchers have found instances of bias targeting specific groups even when there was no intent to discriminate.Some lawmakers already are demanding a federal response. Sen. Elizabeth Warren, a Massachusetts Democrat and contender to challenge President Donald Trump in the 2020 presidential election, told federal regulators in June that the government “will have to take action to ensure that anti-discrimination laws keep up with innovation.(Updates with tweet from Steve Wozniak.)To contact the reporters on this story: Sridhar Natarajan in New York at email@example.com;Shahien Nasiripour in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Virginia Van Natta, Matthew G. MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Oil erased an early loss Friday, capping a weekly gain as investors shrugged off a comment by President Donald Trump that the U.S. hasn’t agreed to fully roll back tariffs with China.Futures in New York climbed 1.9% on the week to settle at a six-week high. U.S. equities drifted after Trump said the U.S. hasn’t agreed to a tariff rollback with China, tempering some of the optimism that a preliminary trade deal will be reached next month. Investors have been whipsawed the past two days amid an onslaught of contradictory headlines about progress in the trade war.“The U.S. is still looking to get something done so it’s just an on again, off again thing with bantering back and forth,” said Kyle Cooper, research director at IAF Advisors in Houston. “Optimism regarding the U.S.-China trade deal is the driving force behind it.”Oil has fallen about 14% since hitting this year’s peak in April as the trade spat saps crude consumption and global supplies expand. OPEC and its partners will probably keep output steady when they meet next month as markets are on track to re-balance, according to Goldman Sachs Group Inc. and Trafigura Group Ltd.“OPEC’s ability to cut production and help prices firm has neared its limits and Saudi Arabia might find it difficult to convince other members to deepen product cuts,” said Daniel Ghali, commodity strategist at TD Bank in Toronto. “If OPEC can’t deepen their commitment we are set for an oversupply and that is going to be bearish for prices.”See also: Aramco Taps Billionaire Olayans, Saudi Prince for IPO OrdersWTI for December delivery rose 9 cents to settle at $57.24 a barrel on the New York Mercantile Exchange.Brent for January settlement rose 22 cents to $62.51 a barrel on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a premium of $5.25 to WTI.“The U.S.-China trade talks are heading in the right direction” but “there are still several obstacles that will need to be overcome,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London. “The road to a final resolution will be bumpy. The upside for the risk-asset complex is limited and the current momentum is built on wobbly foundations.”Rolling back tariffs would pave the way for a de-escalation in the trade war that’s cast a shadow over the world economy. China’s key demand since the start of negotiations has been the removal of punitive tariffs, which by now apply to the majority of its exports to the U.S.“If anything, Trump’s statements were a dose of reality,” said Ashley Petersen, oil market analyst at Stratas Advisors in New York. “Investors got a little too optimistic and too excited and spiked these prices and now we are seeing a rollback as the White House comes out with fairly firm statements.”To contact the reporter on this story: Jacquelyn Melinek in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Mike JeffersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
, the retail banking arm of investment bank Goldman Sachs, is set to enter the UK’s retail investment market by launching a stocks and shares Isa with Nutmeg, the UK online wealth manager. The tie-up will enable Marcus to offer its growing UK customer base access to Nutmeg’s investment products from early next year, according to two people briefed on the plans.
One farewell to start: FT Alphaville’s Markets Live, the home for uncut M&A gossip for more than a decade, is coming to an end. The original team of Paul Murphy and Neil Hume are reuniting with Bryce Elder for the final session at 11am London time. Remember the days when Goldman Sachs was the Ferrari of the investment banking world, a symbol of elite status and racy ambition rolled into one?
(Bloomberg) -- Hong Kong has long defied predictions it’ll lose its stature as Asia’s top international financial center — but for how much longer?Proponents of the city say its laws make it the perfect place for China to plug into global markets and note many financial players have deep roots there. Yet by several measures the future isn’t so bright. Hong Kong now handles fewer stock trades than Shanghai. Its wealth management industry is struggling to keep assets as Singapore’s grows. Its taxes are low, but rents are sky high.Now pro-democracy protests are disrupting daily life, battering the local economy into a recession and angering decision makers in Beijing. A big bank looking to expand would probably see a number of reasons to pick a rival city.Here’s how Hong Kong stacks up by key numbers, starting with its favorites.Stock OfferingsHong Kong has long been a top destination for initial public offerings. The city raised $36.8 billion last year, making it the world’s busiest venue, according to data compiled by Bloomberg.That’s what matters, according to K.C. Chan, the city’s former secretary for financial services and the treasury.“A financial center’s most important functions include fundraising and asset management,” he said in an interview. He argues that when the city helps entrepreneurs sell stock, it has an advantage in winning their business for reinvesting the money.Shanghai is establishing itself as a strong competitor, helped by the government’s loosening of policies to encourage companies to rely less on borrowing and more on equity markets for financing. This year it may raise more money via IPOs than Hong Kong for the second time in a decade.Trading HubHong Kong may be the favored venue to tap capital from abroad, but Shanghai is where most Chinese companies go to raise money domestically. That, along with legions of retail investors and sometimes-dramatic market swings, have fueled Shanghai’s trading volume.The former British colony suffered a setback last month when London Stock Exchange Group Plc. fended off a takeover bid from Hong Kong Exchanges & Clearing Ltd. An existing tie-up with the Shanghai Stock Exchange “is our preferred and direct channel to access the many opportunities with China,” LSE said in rebuffing the deal.Money ManagementHong Kong is still ahead in money management, but the stockpile of assets it tends plateaued last year as Singapore’s kept growing. Now, Hong Kong clients are getting anxious. Goldman Sachs Group Inc. estimates investors probably moved as much as $4 billion to Singapore amid Hong Kong’s political unrest as of August. The demonstrations have since continued.Then there’s the looming question: Where might China’s massive pent-up wealth flow?Deposits are less sticky, and in August they left Hong Kong at one of the highest rates in years. By the end of September, foreign-currency deposits reached a record in Singapore. Banks including HSBC Holdings Plc and Standard Chartered Plc are playing down the shift, saying last week that even if some customers are weighing contingency plans for cash parked in the city, actual moves are modest.Economic GrowthHong Kong’s defenders say the local economy’s slump has little bearing on the city’s attractiveness as a financial center. Yet growth can signal where companies are betting on the future. Shanghai’s relatively rapid expansion underscores that.“Shanghai is the financial center of China and should continue to benefit from continued growth of the nation’s massive economy and ongoing efforts to internationalize the yuan,” said Hubert Tse, a partner at law firm Boss & Young in Shanghai, who’s advised global financial institutions in China since 2003. Tse, who believes Shanghai will establish itself as the dominant hub, moved there 16 years ago from Hong Kong and travels frequently to Singapore.Daily LifeStill, China places leagues behind in a number of international rankings on doing business. It ranks 28th on the World Economic Forum's 2019 Global Competitiveness Index, a measure of productivity, following Hong Kong at No. 3 and Singapore at No. 1.The Economist Intelligence Unit also ranks Singapore as the top global business environment among 82 regions. Hong Kong is ranked 10th and China 56th. “China’s closed capital account and its dense regulatory framework have weighed on its score,” said Nick Marro, Hong Kong-based global trade lead at the research and advisory firm.Another thing that’s certain in Shanghai is taxes, with significantly higher rates than the competing hubs.Singapore and Hong Kong are much more international and are used to making life easier for expats. More than a quarter of Singapore’s population comes from abroad. And in Hong Kong, an English-speaking housekeeper typically costs about half as much as in Shanghai.But in terms of rents, Hong Kong property prices truly reign supreme.Lifestyle considerations such as international schools and living standards also help determine how attractive a financial center is.And, of course, everyone has to eat.\--With assistance from Lucille Liu, Alfred Liu, Zhen Hao Toh and Chanyaporn Chanjaroen.To contact the editor responsible for this story: Jun Liu at firstname.lastname@example.org, David ScheerJonas O BergmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As Deutsche Bank and Commerzbank discussed a historic merger earlier this year, Goldman Sachs was drawing up a plan to poach their clients. With revenues of €500m-€2bn, the 900 or so Mittelstand companies that make up Germany’s corporate heartland used to be too small to interest Goldman’s investment bankers. “What we’re talking about now is more expansive footprint growth,” said Goldman president John Waldron.
(Bloomberg) -- German insurer Allianz SE has paid about $1 billion for part of Goldman Sachs Inc.’s stake in closely-held Chinese insurer Taikang Life Insurance Co., according to people with knowledge of the matter.Goldman sold a stake of about 4% in Beijing-based Taikang Life to Allianz, according to a statement by the Chinese insurer on Wednesday. The statement didn’t provide any financial details. The U.S. investment bank will retain about 8.6% in Taikang Life after the transaction.The sale had attracted interest from other potential suitors including private equity firms and some Asian investors, the people said, who asked not to be identified as the information is private.A representative for Goldman Sachs declined to comment, while a representative for Allianz didn’t immediately respond to requests for comment.Europe’s largest insurer is seeking to tap the growing demand for insurance products in China. Allianz’s investment in Taikang Life follows other recent acquisitions, including the general-insurance assets of Brazil’s SulAmerica in August and two insurance businesses in the U.K. for a combined $1 billion in May. Shares of Allianz rose 1% on Wednesday.Founded in 1996, Taikang Life Insurance is among China’s largest insurance and financial services companies with 800,000 employees and agents, according to its website. Its main business areas are insurance, asset management, and health and elderly care. Goldman bought the stake in Taikang from French insurer AXA SA in 2011.(Updates to add Allianz’s share performance in fifth paragraph)To contact the reporter on this story: Manuel Baigorri in Hong Kong at email@example.comTo contact the editors responsible for this story: Fion Li at firstname.lastname@example.org, Philip GlamannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- UBS Asset Management Australia’s Anne Anderson says that despite “a lot of chatter” about quantitative easing, policy makers are likely to opt for an extended period of low interest rates and targeted fiscal policy to support the economy Down Under.“It is still a very long way away for Australia, if at all,” Anderson, head of fixed income, said of a bond-buying program in an interview with Bloomberg Television in Sydney Thursday. They’re exploring it, “as a prudent regulator and government should, but I just think there’s other things that will be done before we get to that policy.”Anderson identified fiscal measures and “very accommodative monetary policy” as the main responses. She didn’t go into detail on what Treasurer Josh Frydenberg and his colleagues might do to stimulate growth.Anderson’s comments on the need for government to step up echo Goldman Sachs Group Inc.’s Andrew Boak and Westpac Banking Corp.’s Bill Evans who in recent days urged authorities to bring forward income tax cuts to 2020. The Reserve Bank cut rates three times since June and may only have one more conventional reduction available before it reaches the lower bound of policy.Still, the government has resisted calls to loosen the purse strings, instead restating its plan to return the books to the black. Prime Minister Scott Morrison pledged to deliver a budget surplus in the May election he unexpectedly won and is loath to break that commitment given it was the centerpiece of his message on strong economic management.To contact the reporter on this story: Sybilla Gross in Sydney at email@example.comTo contact the editors responsible for this story: Edward Johnson at firstname.lastname@example.org, Michael Heath, Jiyeun LeeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want to receive this post in your inbox every afternoon? Sign up hereThe top U.S. diplomat in Ukraine was deeply concerned about President Donald Trump’s now-famous proposal to his equal in Ukraine—that he investigate former Vice President Joseph Biden and the 2016 presidential campaign in exchange for security aid and a White House meeting. This, the latest from unsealed transcripts of House impeachment testimony, came as Trump moved to bolster his public relations team, and perhaps with good reason: One House Democrat told CNN that quid pro quo is the wrong phrase to describe the transaction at the heart of the impeachment inquiry. He said it’s really about “bribery and extortion.” —Josh PetriHere are today’s top storiesTrump and Chinese President Xi Jinping may not be able to sign a deal to partially resolve the trade war until December.Chinese state-owned entities are in talks about investing as much as $10 billion in Saudi Aramco’s initial public offering. Republicans suffered setbacks in Virginia and Kentucky as part of Tuesday’s elections.More U.S. millennials are suffering from chronic health problems that could limit their lifetime earning potential.K-pop became a global sensation by signaling the virtuousness of its stars. Sex trafficking, date rape, spy-camera recordings and bribery weren’t supposed to be part of the bargain.Consumers are increasingly aware of their food’s carbon footprint. So it shouldn’t come as a surprise that plant-based meat companies are now selling themselves as climate-friendly.What’s Joe Weisenthal thinking about? Profits are suddenly important again, the Bloomberg news director opines. Softbank CEO Masayoshi Son said a lesson of the WeWork debacle is that companies need to have an obvious road to the black. Goldman Sachs CEO David Solomon said the same thing yesterday. Unsurprisingly, there’s recently been a reckoning for companies with uncertain prospects of making money.What you’ll need to know tomorrowThe IMF warns Europe to prepare for the worst. Elon Musk sets a date to unveil Tesla’s new pickup. New Jersey Transit needs help moving stadium-sized crowds. New York City voted for a better way to vote. Ray Dalio says the “world has gone mad” with so much free money. The Las Vegas nightclub boom may be coming to an end. Vape shops will likely be exempt from coming E-cigarette restrictions.What you’ll want to read in Bloomberg GraphicsThe land of golden dreams isa residential nightmare. The median price for a new home in California now tops $600,000, more than twice the rest of the country. The poverty rate, adjusted for the cost of living, is the worst in the nation. The state is home to 12% of the U.S. population, but a quarter of its homeless population. How did it get so bad? Let us explain.To contact the author of this story: Josh Petri in Portland at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Apple"s new credit card has been hit with charges of sexism, and now compliants are coming from the company"s co-founder. Steve Wozniak says he got 10 times the credit limit his wife received even though they do not hold separate assets or bank or credit accounts. The criticism behind the iPhone maker's credit card began Thursday, when entrepreneur David Heinemeier Hansson tweeted that the card gave him 20 times more credit than his wife had received. Apple launched its highly anticipated titanium credit card in August in partnership with Goldman Sachs. Apple didn't respond to a Reuters request for comment. But Goldman said card applicants were independently evaluated according to income and creditworthiness. The investment bank said it took into account factors such as personal credit scores and personal debt but insisted it hasn't and will not "make decisions based on factors like gender." Now, regulators are looking into the charges. New York's Department of Financial Services said it's starting an inquiry into Goldman's credit card practices. Its superintendent says the law bars algorithms from discriminating against protected classes of individuals. Goldman Sachs shares fell roughly 1% in early trading Monday; Apple shares were flat.