TransferWise is now Europe's most valuable fintech start-up, with a $3.5 billion valuation - CNBC

TransferWise co-founders Taavet Hinrikus and Kristo Kaarmann.

TransferWise

TransferWise, the money transfer company that's taking on Western Union, is valued at $3.5 billion after a new investment round, making it Europe's most valuable financial technology start-up.

In lowering fees and adding a slick online platform to help consumers move money globally and track their transfers, the London-based company is taking a modern approach to a staid business that's been dominated by giants like Western Union and MoneyGram.

The company says it's been pushing for more transparency around the fees banks and currency exchange services charge their customers for transferring money abroad.

"Eight years ago we had a dream, and in a way the whole world was against us," said TransferWise co-founder and Chairman Taavet Hinrikus in an interview. "And we've been able to step by step build the business and also change the environment around us to be much more consumer friendly."

TransferWise isn't adding fresh cash to its balance sheet with the investment, but instead giving employees and early investors the chance to sell some of their stake in a $292 million secondary deal.

European private equity group Vitruvian Partners and U.S. investment firms Lone Pine Capital and Lead Edge Capital bought shares from existing investors, while early investors Andreessen Horowitz and Baillie Gifford increased their holdings in the company. Funds managed by BlackRock also contributed to the round.

"We have been a profitable company for the past two years, we have a significant amount of cash sitting on our balance sheet," Hinrikus said. "The company does not need any cash."

TransferWise booked a net profit of £6.2 million ($7.9 million) for the fiscal year ending March 2018, while annual revenue almost doubled to £117 million. The company says it's signing up 10,000 new business customers a month, and now has 5 million total customers, processing £4 billion in monthly transactions.

The latest fundraising means TransferWise is now the most valuable fintech start-up in Europe, surpassing British digital lender OakNorth, which was last valued at $2.8 billion.

Hinrikus said the company isn't in a rush to go public.

"While we believe we'll be a public company eventually, that doesn't help us do what we want to do in the next couple of years," he said.

For now, the company is focused on growth. TransferWise currently has more than 1,600 employees worldwide and will hire 750 more over the next 12 months, Hinrikus said.

WATCH: How TransferWise has integrated its product into bank apps

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https://www.cnbc.com/2019/05/22/transferwise-valued-at-3point5-billion-after-292-million-secondary-sale.html

2019-05-22 04:26:58Z
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Coca-Cola is bringing back New Coke in honor of 'Stranger Things' - CNN

The company is bringing back a limited number of New Coke cans in honor of the upcoming third season of "Stranger Things," in which the product is featured.

"Stranger Things" creators Ross and Matt Duffers came up with the idea to bring New Coke back as a way to promote the show, which will start streaming on Netflix (NFLX)on July 4. The third season of the show takes place during the summer of 1985 — when Coca-Cola (KO) debuted a new recipe for its iconic beverage.

So-called New Coke was a flop: Consumers reacted so poorly to the new drink that Coca-Cola pulled it from shelves after a few months. New Coke was rebranded as Coke II, and sold in some places after 1985. But this is the first time Coca-Cola is bringing back New Coke with that branding.

Bringing New Coke back is a way for Coca-Cola to "not take ourselves too seriously," Stuart Kronauge, president of Coke's sparkling business unit and senior vice president of marketing for Coca-Cola North America, told CNN Business. And it wasn't easy to recreate the product: Coca-Cola had to reach into its archives to get the design of right, and dig through its vault to recover the recipe.

"Maybe a while ago we wouldn't have done this," Kronauge said. "But we're changing and trying to innovate in ways that are beyond traditional new products. This is a cultural innovation." Coca-Cola recently partnered with Disney Parks & Resorts on custom designs for Coke products being sold at Disney's new "Star Wars" theme park, "Galaxy's Edge."

The partnership is a way for Coke to reach people in an evolving media landscape.

"Buying a 30-second ad to drop into a certain time-frame is not as valuable as it once was," Kronauge said.

"The world is changing into streaming and non-ad platforms and subscription-based platforms," she added. "So it's important for us to make sure that we are where our consumers' eyeballs and hearts and spirits are." The new promotion is designed to "break the internet" Kronauge said.

There are three ways for customers to get the retro product: As a gift when they buy limited-edition "Stranger Things" Coke and Coke Zero Sugar glass bottles online starting Thursday, through "Stranger Things" themed pop up vending machines that will be in cities this summer, or as a giveaway when they purchase a gift or ticket at the World of Coca-Cola in Atlanta. Coca-Cola has produced under 500,000 of the New Coke 12-ounce cans, and expects to run out quickly.

The company is also selling "Stranger Things" themed cans of regular Coke and Coke Zero Sugar, and is releasing a remake of a 1980s ad featuring characters from the show.

For Netflix, the partnership is a way to advertise in new channels.

"We exist on the internet, and Coke has a century of experience in building consumer products that are physical," Barry Smyth, Head of Global Partner Marketing at Netflix, told CNN Business. The streaming platform is also partnering with a number of other companies, including Lego, H&M, Schwinn and Baskin-Robbins, to promote the upcoming season.

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https://www.cnn.com/2019/05/21/business/new-coke-stranger-things/index.html

2019-05-21 14:49:00Z
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Jamie Oliver restaurant chains collapse - BBC News

Celebrity chef Jamie Oliver has said he is "saddened" after his restaurant group went into administration, with 1,000 jobs being lost.

The group, which includes the Jamie's Italian chain, Barbecoa and Fifteen, has appointed KPMG as administrators.

In total, 25 restaurants are affected by the move, 22 of which are from the Jamie's Italian chain.

Mr Oliver, who put in £4m cash this year, said: "I appreciate how difficult this is for everyone affected."

Following the appointment of administrators, all but three of the group's 25 eating establishments have closed. Two Jamie's Italian restaurants and Jamie Oliver's Diner at Gatwick Airport will continue to trade in the short term.

"The group had recently undertaken a process to secure additional investment into the business and, since the beginning of this year, Jamie Oliver has made available additional funds of £4m to support the fundraising," said the administrators in a statement.

"However, with no suitable investment forthcoming and in light of the very difficult current trading environment, the directors resolved to appoint administrators."

Jamie Oliver's Fifteen Cornwall at Watergate Bay, which operates under a franchise, is unaffected. The international restaurants trading as Jamie's Italian, Jamie's Pizzeria and Jamie's Deli will also continue to trade as normal.

'Passion'

Mr Oliver added: "I would also like to thank all the customers who have enjoyed and supported us over the last decade, it's been a real pleasure serving you.

We launched Jamie's Italian in 2008 with the intention of positively disrupting mid-market dining in the UK High Street, with great value and much higher quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that."

Notices have appeared in the windows of the 22 branches which have already closed.

The Unite union said the development was a "devastating blow for the chain's hardworking and loyal workforce".

"Restaurants are not being helped by the current economic uncertainty, although those businesses like Jamie Oliver's that dashed for expansion in recent years seem particularly precarious. As ever, it is the workers at the restaurant and in the supply chain who bear the heavy cost of boardroom decisions."

The union also asked for assurances assurances that staff will be "protected and paid all the money they're owed, including wages, holiday and redundancy".

Fame

Mr Oliver is known for his Naked Chef books and TV shows, broadcast in dozens of countries, after first being shown in the UK 20 years ago.

He has also campaigned for healthier eating, including in school meals.

His chain is the latest victim of a tough trading environment on the UK High Street.

Earlier this year, cafe chain Patisserie Valerie fell into administration, and 70 outlets closed, with the loss of 920 jobs, although 96 shops were saved.

Other mid-market chains that have struggled in recent years have included Byron Burger, Prezzo and Carluccio's.

Mr Oliver's business has faced difficulties over the past two years, with a number of Jamie's Italian and Barbecoa restaurants shutting.

In 2017, he closed the last of his Union Jacks restaurants and also shut his magazine Jamie, which had been running for almost 10 years.

In December of that year the chef also put £3m of his own money into his restaurant businesses.

Simon Mydlowski, a partner at law firm Gordons and an expert in the hospitality industry, said Jamie's had failed to keep up with changing trends.

"To be successful in this sector you have to be constantly evolving - from the menus and the drinks choice, to the way you engage with customers."

"Faced with higher rent, rising food prices and increased competition, restaurants need a point of difference - it's no coincidence that smaller brands with the freedom and flexibility to keep things fresh are currently the ones performing well."

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https://www.bbc.com/news/business-48352026

2019-05-21 14:26:15Z
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Wall Street bounces as Huawei reprieve sparks rally - Investing.com

© Reuters. Traders work on the floor at the NYSE in New York

By Shreyashi Sanyal

(Reuters) - U.S. stock indexes rose in a broad-based rally on Tuesday, as Washington's decision to temporarily ease curbs on China's Huawei Technologies allayed concerns over a further escalation in trade war between the two countries.

Chipmakers, which bore the brunt of Monday's sell-off, rose after the United States granted the Chinese telecoms equipment maker a license to buy U.S. goods until Aug. 19.

The Philadelphia Semiconductor Index gained 1.61% and was on track to end a three-day slump. Companies that have been supplying to Huawei including Intel Corp (NASDAQ:), Qualcomm (NASDAQ:) Inc, Xilinx Inc (NASDAQ:) and Broadcom (NASDAQ:) Inc rose between 1% and 2%.

The broader technology sector rose 1.08%, the most among the 11 major S&P sectors trading higher.

"The easing up on Huawei is being seen as a sign that while the United States and China are unhappy with each other, neither side wants to burn the negotiation bridge at the moment," said Connor Campbell analyst at Spreadex in London.

U.S. President Donald Trump added Huawei to a trade blacklist last week, leading several companies to suspend business with the world's largest telecom equipment maker and triggering fears that the decision could deeply impact the global technology sector.

Reuters reported on Sunday that Alphabet (NASDAQ:) Inc's Google would stop providing Huawei access to its proprietary apps and services. But Huawei said on Tuesday it was working closely with the U.S. company to resolve the restrictions.

Wall Street has been impacted by mounting concerns about a prolonged trade war, with the S&P 500 set to post its worst monthly decline since the December sell-off. The benchmark index is trading 3.3% below its all-time high hit earlier in May.

"This is a pure case of cautiousness and we're stuck in a trading range. The recent behavior is of indecisiveness," Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said.

At 9:49 a.m. ET the was up 137.73 points, or 0.54%, at 25,817.63. The S&P 500 was up 19.20 points, or 0.68%, at 2,859.43 and the was up 67.04 points, or 0.87%, at 7,769.41.

Investors also focused on earnings reports from a handful of retailers, which proved to be disappointing.

Home Depot Inc (NYSE:) shares dipped 0.5%, the most on the Dow, after the home improvement chain reported its slowest growth in quarterly same-store sales in at least three years.

Kohl's Corp plunged 12.4%, the most among S&P 500 companies, after the department store operator cut its full-year profit forecast and reported quarterly same-store sales and profit that missed expectations.

Rival J.C. Penney Co Inc fell 7.4% after the company reported a bigger-than-expected fall in quarterly comparable-store sales.

Advancing issues outnumbered decliners by a 3.78-to-1 ratio on the NYSE and by a 2.78-to-1 ratio on the Nasdaq.

The S&P index recorded 21 new 52-week highs and four new lows, while the Nasdaq recorded 30 new highs and 29 new lows.

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2019-05-21 14:08:00Z
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JC Penney Continues to Hemorrhage - WJON News

PLANO, Texas (AP) -- Losses are widening at J.C. Penney and sales are falling after the retailer shed its furniture and major appliance businesses.

Same store sales tumbled 5.5% and shares fell by about as much Tuesday.

The company on Tuesday reported a loss of $154 million in its first quarter, or 48 cents per share. Losses, adjusted for one-time gains and costs, came to 46 cents per share. That's worse than the per share loss of 39 cents Wall Street was expecting, according to a survey by Zacks Investment Research.

The Plano, Texas-based company's revenue was $2.56 billion, down 5.6%.

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2019-05-21 12:02:00Z
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Home Depot earnings beat despite wet start to spring - CNBC

Home Depot on Tuesday reported fiscal first-quarter earnings that beat analysts' expectations, as shoppers spent more in its stores, despite a damp start to the spring in much of the U.S.

Home Depot shares were up less than a percent in premarket trade following the release.

Here's how the company did, compared to what Wall Street expected, according to Refinitiv consensus estimates:

• Earnings per share: $2.27, vs. $2.18 expected
• Revenue: $26.381 billion, vs. $26.378 expected

Sales at stores open at least 12 months rose 2.5% on a global basis and were up 3.0% in the U.S. This was shy of the 4.2% estimate from Refinitiv, but it wasn't immediately clear if the numbers were comparable due to an extra week in the year-ago quarter. 

In the quarter ended May 5, net income rose to $2.5 billion, or $2.27 a share, from $2.4 billion, or $2.08 a diluted share, a year ago. Analysts were predicting the company would earn $2.18 a share.

Revenue climbed 5.7% to $26.381 billion, slightly above Refinitiv's consensus estimate of $26.378 billion.

"We were pleased with the underlying performance of the core business despite unfavorable weather in February and significant deflation in lumber prices compared to a year ago," Home Depot CEO and president Craig Menear said in a company release.

Home Depot said customer transactions were up 3.8% during the quarter, while the average shopper's ticket increased 2.0%, and sales per square foot were up 5.6%.

The company reaffirmed its guidance for fiscal 2019, which estimates earnings will rise 3.1% to $10.03 per share. Same-store sales are expected to grow 5%, while revenue increases 3.3%.

Retailers like Home Depot and rival Lowe's are well positioned in the current environment, Oppenheimer's Brian Nagel said in a note to clients on Monday.

"In our view, a recent, substantial slide in mortgage rates should lead to a steady re-strengthening in key housing metrics, thereby supporting improved sales and, maybe more importantly, undermining meaningfully the still negative market narrative weighing upon multiples within the space," Nagel said. "We are optimistic that as weather turns more spring-like, sales of seasonal merchandise will improve, perhaps markedly."

As of Monday's market close, Home Depot shares, which have a market value of $210.6 billion, are up more than 11% this year and up less than a percent over the past 12 months. Lowe's, which is set to report earnings before the bell Wednesday, is up 18% since January and 24% over the past 12 months. It has a market cap of $86.9 billion.

Clarification: It is unclear how Home Depot same-store sales compare with estimates, since the company reported its results on a 52-week basis. Last year, its fiscal first quarter had 53 weeks. An earlier headline said same-store sales fell short.

Correction: Last quarter, Home Depot's forecast was viewed as disappointing. An earlier story incorrectly said the company cut its forecast.

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https://www.cnbc.com/2019/05/21/home-depot-earnings-q1-2019.html

2019-05-21 11:33:27Z
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Morgan Stanley cuts bear case on Tesla to $10 - Seeking Alpha

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Morgan Stanley cuts bear case on Tesla to $10  Seeking Alpha

Morgan Stanley analysts have delivered another blow to Tesla (TSLA), slashing their worse-case scenario for the stock price to just $10 (from $97) because.

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https://seekingalpha.com/news/3465547-morgan-stanley-cuts-bear-case-tesla-10

2019-05-21 10:11:00Z
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