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Zhang Dayi makes a living by livestreaming. And for her, it's turned into a very lucrative business. In fact, she's a millionaire. Dayi films herself talking about items of clothing and answers questions on anything from its sizing to smell. Ahead of China's online shopping festival "Double-12", the equivalent of e-commerce giant Alibaba's Single's Day, millions have watched her every move -- and provided affirmation in the form of 'likes'. The secret to her success? Well, she says it takes dedication, ambition and the direct communication that comes with livestreaming. (SOUNDBITE) (Mandarin) LIVESTREAMER AND SOCIAL MEDIA INFLUENCER, ZHANG DAYI, SAYING: "I started my (online) shop in the second half of 2014. At first, I used a form of photo and text (to interact with users), and then short videos, and then gradually used livestreaming as a tool to frequently chat with users. I think livestreaming is an all-around and more direct way of communication. Along with the development of the internet and changes to online platforms, we are also optimising ourselves. I think when it comes to us selling products, it (livestreaming) is a very effective way to convince users and communicate with them as well as establish trust with them." Dayi dipped her toe into the world of live-streaming when Alibaba started testing the service. She has four business -- which earned 48.6 million US dollars across the Singles Day event in November.
Yesterday at TechCrunch Berlin, we sat down with Sebastian Siemiatkowski, the co-founder and CEO of Klarna, a 15-year-old company that's currently the most highly valued privately held fintech in Europe, following a $460 million investment that pegged the company's worth at $5.5 billion back in August. Siemiatkowski came to the event largely to take the wraps off a new tech hub in Berlin that will house 500 employees in product and engineering. Klarna has also begun competing more aggressively in the U.S. -- as well as fending off a growing spate of competitors, from publicly traded AfterPay to Max Levchin's Affirm to Sezzle, a company in Minneapolis that seemingly appeared from out of the blue a few years ago.
(Bloomberg) -- Oracle Corp. gave a sales forecast for the current quarter that was in line with analysts’ estimates, signaling muted demand for the company’s software amid its uneven transition to cloud computing.Revenue will increase 1% to 3% in the fiscal third quarter, Chief Executive Officer Safra Catz said Thursday on a conference call with analysts. Wall Street projected a 2.3% jump.Earlier, the world’s second-largest software maker reported sales gained less than 1% to $9.61 billion in the period that ended Nov. 30, short of analysts’ projections of $9.65 billion. Shares declined 3% in extended trading after closing at $56.47 in New York. The stock has gained 25% this year.Oracle’s report was the first since the October death of Mark Hurd, its top sales executive and one of the company’s two chief executive officers. Chairman Larry Ellison said on the call that the company had no plans to replace Hurd, leaving Catz as sole CEO. He pointed toward Oracle’s next line of executives, who lead business divisions, saying, “those people will be the next CEO when Safra and I retire, which will be no time soon.”Since Hurd’s death, Ellison and Catz have sought to reassure investors about the company’s stability, emphasizing Oracle’s advantage in the market for financial planning applications, where it’s seeing some of its strongest sales growth.While Oracle has made little headway in its effort to compete with the biggest cloud companies to rent computing power and storage, it remains a leader in database software. Now, the company is betting on its new Autonomous Database, which runs without a need for human administrators, to spur revenue in the face of strong competition from Amazon.com Inc.’s cloud division.After inconsistent sales growth the past five years, Catz pledged to investors in September that revenue would accelerate this fiscal year and next, and that earnings per share would grow by a double-digit percentage. To help reach that goal, the company that month announced a new artificial intelligence-driven operating system, as well as partnerships with software makers such as VMware Inc. and Box Inc.In the fiscal second quarter, revenue from cloud services and license support climbed 2.6% to $6.8 billion. While that metric includes sales from hosting customers’ data on the cloud, a large portion is generated by maintenance fees for traditional software housed on clients’ corporate servers.Cloud license and on-premise license sales decreased 7.5% to $1.13 billion in the period, suggesting the company is signing fewer new deals.Profit, excluding certain items, was 90 cents a share, compared with analysts’ average estimate of 89 cents. In the current quarter, Oracle projected earnings of 95 cents a share to 97 cents a share. Analysts, on average, estimated 96 cents a share.(Updates with forecast in the second paragraph)To contact the reporter on this story: Nico Grant in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Amazon (AMZN) have slipped 6% in the past six months, while the S&P 500 climbed 9%. So when will Wall Street and investors start to think about buying Amazon stock again?
(Bloomberg) -- Saudi Aramco is poised to pay a combined $64 million to the banks that arranged the world’s largest initial public offering, a letdown for the Wall Street firms that pitched aggressively for a spot on the deal, people with knowledge of the matter said.The Gulf oil giant plans to pay the top local banks on the deal -- known as joint global coordinators -- 39 million riyals ($10.4 million) apiece, according to the people. The top foreign banks on the deal are set to each get 13 million riyals, or the equivalent of $3.5 million, the people said, asking not to be identified because the information is private.The figures represent the base fee being paid by Aramco, which will decide the amount of discretionary incentive fees at a later date, the people said. If Aramco opts to dole out additional money, most of it would likely go to the domestic banks that brought in the bulk of the IPO orders.Aramco raised $25.6 billion in its share sale, which became a local affair after foreign fund managers shunned its premium valuation. The base fee, representing 0.25% of the funds raised, pales in comparison to other large deals.IPO banks globally earned average fees equal to 4.1% of the deal size this year, up from 3.6% last year, according to data compiled by Bloomberg. Chinese internet giant Alibaba Group Holding Ltd., which raised $25 billion in its 2014 IPO, paid about $300 million to its underwriters including performance fees.Saudi Arabia didn’t need the Wall Street firms’ international networks after it scrapped roadshows outside the Middle East, turning instead to local retail buyers and wealthy families to shore up the deal. The foreign underwriters on the deal will barely make enough to cover their costs, Bloomberg News has reported.Aramco will pay local banks serving as bookrunners, a more junior role, about 5 million riyals each while foreign banks in that position will be paid about 2 million riyals apiece, the people said. The company declined to comment.(Updates with details of fee breakdown in third paragraph.)\--With assistance from Dinesh Nair.To contact the reporters on this story: Sarah Algethami in Riyadh at email@example.com;Matthew Martin in Dubai at firstname.lastname@example.org;Archana Narayanan in Dubai at email@example.comTo contact the editors responsible for this story: Ben Scent at firstname.lastname@example.org, ;Stefania Bianchi at email@example.com, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Given the huge success of Disney's streaming service, investors could tap the opportune moment with consumer ETFs having the largest exposure to this global media and entertainment company.
Factors like the ongoing trade uncertainty and sluggish industrial production are likely to have hampered FedEx (FDX) Express performance in second-quarter fiscal 2020.
Tik Tok-parent ByteDance's new music app Resso is expected to challenge the dominance of Spotify (SPOT) and Apple in the music streaming space.
Smart speaker market in Asia-pacific (APAC) region is gaining steam on the back of growing efforts by Amazon (AMZN), Google, Alibaba, Baidu and Apple.
(Bloomberg Opinion) -- As the 2010s come to a close, it’s safe to say that the decade has been an enchanted one for U.S. stocks. The hard question is what lies in the decade ahead, and the data suggests that investors shouldn’t expect a repeat performance. When the U.S. narrowly averted an economic meltdown at the end of the last decade, few anticipated that the following one would feature a historic rally for U.S. stocks. The S&P 500 Index has returned 13% a year from 2010 through November, including dividends, easily outpacing its long-term annual return of roughly 9%. It’s also the market’s fifth best decade since 1880. Only the 1920s, 1950s, 1980s and 1990s produced higher returns.The surprising rally from the rubble of the 2008 financial crisis has touched off a fierce debate about what fueled the resurgence and, more important, whether it can continue. One popular theory is that the Federal Reserve goosed the market by unleashing a mountain of cheap money through low interest rates and quantitative easing. Another theory is that corporate earnings were boosted by a handful of fast-growing companies, such as Facebook Inc. and Amazon.com Inc., and by a wave of share buybacks, all of which lifted the market. The implication is that as long as the Fed keeps the money flowing, and highfliers and stock repurchases continue to supercharge earnings, the party can continue.But none of those theories stand up to scrutiny. To see why, it’s helpful to break down the market’s return into its component parts: dividends, earnings growth and changes in valuation. Blogger Ben Carlson recently posted numbers compiled by late Vanguard Group founder Jack Bogle for each decade since 1900. I ran the numbers going back to 1880 using data compiled by Yale professor Robert Shiller, and the results closely resemble Bogle’s.So what do the numbers reveal about the last decade? Of the S&P 500’s 13.3% annual return since 2010, 2.3% came from dividends, 10.2% from earnings growth and 0.8% from the change in the market’s valuation, as measured by the 12-month trailing price-to-earnings ratio. In other words, the vast majority of the gains can be attributed to a spike in earnings rather than investors’ willingness to pay more for stocks. In fact, the decade’s earnings growth was the highest on record.That’s a problem for those who credit the Fed for the market’s stellar decade because cheap money doesn’t appear to have pushed investors to splurge for stocks. That jibes with the recent experience of much of the developed world, where a flood of monetary stimulus in Europe and Japan over the last decade failed to expand their stock market valuations. It’s also consistent with the longer-term record in the U.S., which shows no correlation between P/E ratios and the level of interest rates since 1871, as measured by 10-year Treasury yields (-0.12), counted monthly. (A correlation of 1 implies that two variables move perfectly in the same direction, whereas a correlation of negative 1 implies that two variables move perfectly in the opposite direction.)Nor is there any indication that monetary policy is behind the record jump in earnings. Here again, earnings growth has been muted in Europe and Japan in recent years despite aggressive stimulus by central banks. And there’s been no correlation in the U.S. between the level of interest rates and subsequent earnings growth, whether measured over rolling one-year (-0.06), five-year (0.02) or 10-year periods (0.04) since 1871. While the focus on earnings is correct for understanding the last decade, the theories about what’s behind their surge are no more appealing. For one, the growth was generated by more than just a handful of companies. Of the roughly 370 companies in the S&P 500 for which earnings growth over the last decade can be calculated, 183 increased profits by more than the average of 10.2% a year for the index, according to Bloomberg data. And the median earnings growth was 9.6%, which closely matches the index’s average and shows that the gains were broadly distributed. Buybacks don’t account for the growth, either. Yes, all else equal, buybacks reduce the number of outstanding shares and thereby lift earnings per share, the number commonly used to gauge earnings growth and P/E ratios. But total earnings have grown by 9.4% a year since 2010, just shy of earnings-per-share growth of 10.2%, so buybacks don’t appear to have contributed much. It’s not even clear that the recent rate of buybacks is unusually high.Instead, the better explanation is also a simpler one: Earnings are extraordinarily volatile, even more unstable than stock prices by some measures. The volatility of yearly changes in earnings per share has been nearly three times greater than that of stock prices since 1871, as measured by annualized standard deviation — a whopping 52% for earnings compared with 19% for stock prices. And lest you’re tempted to conclude that much of that earnings volatility is a relic of the ancient past, consider that two of the three most severe earnings recessions on record were the previous two around the dot-com and housing busts. The only one that rivaled them was the 1920-21 recession (no, not even the Great Depression).Given that volatility, it’s unlikely that the last decade’s record earnings growth will spill into the next one. Unfortunately, investors can’t expect much more from the other two sources of stock returns. The dividend yield is likely to remain around 2%, which is roughly where it’s been for decades. And the 12-month trailing P/E ratio is roughly 24, which is 50% higher than its long-term average of 16, so future changes in the market’s valuation are more likely to eat into returns than enhance them.Those sobering figures explain why most Wall Street firms expect U.S. stocks to deliver more muted returns during the next decade. It’s a good reminder that what appears in the rearview mirror is no indication of the road ahead.To contact the author of this story: Nir Kaissar at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nir Kaissar is a Bloomberg Opinion columnist covering the markets. He is the founder of Unison Advisors, an asset management firm. He has worked as a lawyer at Sullivan & Cromwell and a consultant at Ernst & Young. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Rice Basket Queen is the name of a stall run by Ruri Ruhyaty in a bustling suburb of Jakarta. A year ago it was typical of thousands of others. Ms Ruri would place her fish and vegetable dishes on banana ...
(Bloomberg) -- Only a few days after Nintendo Co.’s Switch made its long-anticipated entry into China, one analyst is making a bullish case for Mario and Zelda’s prospects in the world’s biggest gaming arena.Nintendo could sell as many as four million Switch units in China in the fiscal year ending March and 12 million units of software, London-based tech equity researcher Pelham Smithers wrote in a note to clients. That could add as much as 23 billion yen ($212 million) to the Kyoto-based company’s full-year operating profit, Smithers said.Nintendo and its local partner Tencent Holdings Ltd. began selling the Switch console in China on Dec. 10, a move that has excited Nintendo investors hopeful of tapping a new market. But the optimism has been tampered by the historically lackluster performance of Sony Corp.’s PlayStation and Microsoft Corp.’s Xbox consoles, which have had several years to crack the market where smartphones are the dominant gaming platform. Video game giants are also hampered by Beijing’s insistence on vetting all games, which limits the library available to fans and slows new releases. At launch, the Switch only had one state-approved game to play.“While the history of the game console in China is not a happy one, lack of success is not necessarily down to lack of interest on the part of the consumer,” Smithers wrote in the report. “After all: if China’s consumers didn’t play console video games, the authorities wouldn’t have bothered banning them in the first place.”Key Insights:Switch hardware sales in China may range between 2 million and 4 million units in fiscal 2019 and between 3 million and 6 million the following year. Software sales will range between 6 million and 12 million in the current period and 15 million and 30 million in the period ending March 2021.China could contribute between 11.6 billion yen and 23.1 billion yen to Nintendo’s operating profit this year and 27.8 billion to 55.6 billion yen in the next.Smithers forecasts a ratio of three game purchases for each hardware unit sold in both years.He also assumes Tencent takes a 30% share of software sales income, while all of the hardware revenue goes to Nintendo, and that the two companies split the marketing costs.Nintendo’s sales in China may be capped by the company’s unwillingness to significantly increase production volume of the console and risk building up unsold inventory.Nintendo’s signature device is selling for 2,099 yuan ($298), about the same as elsewhere around the world. Mario Kart 8 Deluxe, Mario Odyssey and Super Mario Bros. U Deluxe have been green-lit by the government. Nintendo is also preparing to introduce the Switch Lite -- a cheaper version of the console intended to boost the device’s mainstream appeal -- to China at a future date, development partner Tencent said in a social media post last week.Sales of the Switch might have topped 50,000 units on launch day, according to market researcher Niko Partners, which gathers data from online retailers. Some 20,000 units were sold via JD.com and another 10,000 through TMall, it said in a report. Niko Partners forecasts the sales will reach 100,000 units by the end of the year, far below the 1 to 2 million estimated by Smithers.This isn’t Nintendo’s first attempt to crack the market. Official console sales in China remain a fraction of the overall gaming arena, as region locks and delayed hardware releases push gamers toward imported options. Nintendo confronted similar challenges in attempts to enter China dating back to 2003. It tried to sell, via a joint venture, its Game Boy Advance, Nintendo 3DS and a peculiar China-only portable console called iQue Player. Rampant piracy and slow game launches made those products unappealing.Elsewhere, Nintendo’s Switch retains its popularity three years after its launch, in an industry where consoles are often revamped every half-decade or so. The company has so far stuck with a conservative outlook for 18 million Switch units this fiscal year. Smithers thinks full-year sales outside of China could range between 20 and 21 million.Read more: Nintendo Will Prove the Switch’s Longevity This Holiday SeasonThe company’s shares have climbed more than 50% this year on the anticipation of the Switch’s China debut, the release of a smartphone edition of the Mario Kart franchise and the launch of the cheaper Switch Lite. Nintendo is likely to revise upwards its full-year earnings forecasts when it reports results in January, which could tempt some investors to sell and lock in gains, Smithers wrote.“Even if it doesn’t, this quarter’s figures should impress,” he said.\--With assistance from Zheping Huang.To contact the reporter on this story: Pavel Alpeyev in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Vlad Savov, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Existing laws are failing to protect the public from discrimination by algorithms that influence decision-making on everything from employment to housing, according to new research from the Oxford Internet Institute. Sandra Wachter, the academic behind the study, found algorithms are drawing inferences about sensitive personal traits such as ethnicity, gender, sexual orientation and religious beliefs based on our browsing behaviour.
The founders of Microsoft and Amazon are among the top three richest men in the world -but how do their employees' salaries compare?
Disney+ downloads passed 22 million on mobile devices, the independently owned app-tracking company Apptopia announced Tuesday.
Should investors think about buying beaten down FedEx stock before it releases its second quarter fiscal 2020 earnings results on Tuesday, December 17?